Shares in Google parent Alphabet plummet on profit miss, ad slowdown
Net profit slid 25% from a year earlier to US$26.2 billion in the July-to-September period, well short of expectations by analysts.
Alphabet's shares in Google plummeted over 10% in after-hours trading after the company reported lower-than-expected profit and a slowdown in its advertising business during Q3. The parent company spent US$51.4 billion on capital expenditure, mostly on data centers and AI chips, which was more than double the amount spent a year earlier.
Net profit decreased by 25% to US$26.2 billion, or US$2.12 per share, missing analyst expectations. Revenue increased by 25% to $127.6 billion, slightly below the $128 billion forecast. Advertising revenue grew by 11% to US$82.0 billion, below expectations. Google's search business, the company's largest income source, saw a 12% rise in revenue to US$63.4 billion, while YouTube's advertising revenue grew by 9% to US$11.2 billion.
The company's "Other Bets" division, which includes Waymo, posted a revenue of US$372 million and an operating loss of US$2.0 billion. In 2026, Alphabet plans to spend between US$195 billion to US$205 billion on capital expenditures.
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