Alphabet Inc. misses Q3 revenue expectations despite 25% growth
- Reports
- 11
- Developments
- 1
- Repetition
- 91%
New informationRepeats or wire copies
What happened
Alphabet Inc. reported third-quarter revenue of $127.58 billion, which represented 25% growth year-over-year but was below analyst expectations of $127.97 billion. Net income for the July-September period was $26.17 billion, down from $34.98 billion in the prior year. Sundar Pichai, CEO of Google and Alphabet Inc., stated that the Gemini app reached 1 billion users.
Why it matters
The results caused Alphabet Inc.'s stock to fall in after-hours trading. Despite the revenue miss, the company expects its capital expenditures to increase significantly in 2027.
Who's involved
- Alphabet Inc.Parent company reporting Q3 financial results and stock performance.
- GoogleSubsidiary whose AI product, Gemini, reached 1 billion users.
- FactSetFinancial data company that provided analyst expectations for Alphabet Inc.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- GoogleSpeculative
Missing expectations and stock sinking might affect revenue and valuation.
- Google DeepMindSpeculative
Alphabet Inc.'s financial miss might affect subsidiary valuation and funding.
- Silicon ValleySpeculative
The stock drop might affect regional investment climate and valuation.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Alphabet Inc. stock falls after Q3 revenue misses expectationsAlphabet Inc. stock sinks after missing Wall Street expectationsAlready happening
- Goldman Sachs may revise analysis after Google misses earnings targetsGoldman Sachs may revise forecasts after Google misses Wall Street expectationsLikely
- Financial miss may pressure funding for Google DeepMind's AI researchReduced corporate profitability could slow investment in Google DeepMind's AI researchPossible
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The entities involved
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Google
American multinational technology company, a subsidiary of Alphabet Inc.
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FactSet
American financial data company
Related events
- Sundar Pichai leads Google's overall business strategy.
- Alphabet Inc. is facing a class action lawsuit while also developing the Gemini AI model.
- Microsoft and Google are highlighted as leading AI companies, with Gemini models being central to Alphabet's strategy.
- Google leverages Gemini for AI transformation while competing with Nvidia and Microsoft, with Sundar Pichai speaking in Barcelona.
- Google Cloud momentum is driving Alphabet Inc.'s stock performance.