Alphabet stock falls further as AI spending drives cash burn
Published on 10/29/2026 at 17:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAlphabet weighs growth against investment costs
- Third-quarter revenue increased 25 percent, while diluted earnings per share fell to USD 2.12.
- Google Cloud revenue more than doubled, but negative free cash flow and slower Search growth remain central investor concerns.
- Management kept its 2026 capital-expenditure range and expects spending to increase significantly in 2027.
Alphabet's third-quarter results were published on October 28, 2026, and the stock moved lower again in Thursday trading. At Lang & Schwarz, Alphabet stock stood at EUR 255.43 on October 29 at 16:04:23 CEST, compared with EUR 262.13 at 10:36 CEST in the previous report on the same date. That is a decline of 2.56 percent between the two reported quotes.
Alphabet reported USD 127.577 billion in revenue for the quarter ended September 30, up 25 percent year over year. Operating income rose 30 percent to USD 40.576 billion, but diluted earnings per share fell to USD 2.12 from USD 2.87. The company said an USD 8.664 billion loss on equity securities reduced net income by USD 6.7 billion and earnings per share by USD 0.55.
Cloud growth meets a heavier cash burden
Google Cloud revenue increased 103 percent to USD 30.709 billion, while Cloud operating income reached USD 11.121 billion. Alphabet generated USD 42.290 billion in operating cash flow, but capital spending was USD 51.355 billion, resulting in negative free cash flow of USD 9.065 billion.
The company kept its 2026 capital-expenditure forecast at USD 195 billion to USD 205 billion and expects spending to increase significantly in 2027. Management also said third-party compute capacity will create near-term pressure on Cloud margins as Alphabet expands capacity for artificial-intelligence demand.
CNBC reported that Search and other revenue grew 12 percent to roughly USD 63 billion, below expectations for the second consecutive quarter. The company said search-query growth reached its strongest rate in five years, leaving investors to assess whether rising AI usage can be monetized at the same pace.
The new quote is lower than the EUR 287.25 Xetra close from October 28 cited in the previous report, but this article does not treat that older close as a current-day Xetra comparison. It instead separates the verified Lang & Schwarz update from the company's operating results.
For the latest company disclosures, Alphabet's Investor Relations calendar lists the third-quarter 2026 results announced on October 28.
The real-time quote of Alphabet stock provides the continuously updated market quotation.
U.S. technology shares are being assessed against the broader S&P 500 market environment.
For further developments, see More news and analyses on Alphabet stock.
Alphabet Inc. Class A facts
- Company: Alphabet Inc.
- ISIN: US02079K3059
- Ticker: GOOGL
- Primary exchange: Nasdaq
- Lang & Schwarz quote: EUR 255.43 on October 29, 2026 at 16:04:23 CEST
- Change versus prior report: minus 2.56 percent from EUR 262.13 at 10:36 CEST
- Prior Xetra close: EUR 287.25 on October 28, 2026
- Sector: Communication Services
