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Alphabet EPS of $2.12 Trails Estimates; Revenue Falls Just Short at $127.6 Billion

Excluding a $0.55-a-share loss on equity securities, EPS would have been about $2.67, still short; net income fell to $26.2 billion and quarterly free cash flow was negative $9.1 billion.

By Zintick Team · Reviewed by Kratik Mehta · Editor: Kratik Mehta
Published

Technician with a laptop checking server in the data center
Photo: Juice Flair/Shutterstock.com

Key points

  • GAAP diluted EPS of $2.12 trailed the $2.97 consensus; about $2.67 excluding a $0.55 equity securities loss
  • Revenue of $127.6 billion was 0.2% below the $127.8 billion analyst estimate; up 25% from a year earlier
  • Google Cloud revenue rose 103% to $30.7 billion; operating income $11.1 billion
  • Operating income rose 30% to $40.6 billion; net income fell to $26.2 billion

Alphabet (Nasdaq: GOOGL) reported third-quarter GAAP diluted EPS of $2.12, below the $2.97 analysts expected, and revenue of $127.6 billion, slightly below the $127.8 billion estimate, a gap of about 0.2%, in an 8-K filed Wednesday, Oct. 28. Revenue rose 25% from a year earlier. GAAP EPS includes a $0.55 per-share effect from an equity securities loss; excluding that effect, EPS would have been about $2.67.

Cloud and Search drive growth

Google Cloud revenue rose 103% to $30.7 billion, and Cloud operating income reached $11.1 billion, up from $3.6 billion. The release says TPU systems sales were a meaningful contributor to Cloud revenue growth.

Google Search & other revenue grew 12% to $63.4 billion. The company said its year-over-year Search query growth rate is the highest it has been in the last five years. Google Services revenue rose 11% to $96.3 billion.

Profit and investment gains

Operating income rose 30% to $40.6 billion, and operating margin was 31.8%. Net income available to common stockholders fell to $26.2 billion from $35.0 billion a year earlier.

Other income (expense), net swung to an expense of $8.2 billion, compared with income of $12.8 billion a year earlier. The release reports an $8.7 billion loss on equity securities, which reduced diluted net income per share by $0.55.

Capital and shareholder moves

Alphabet issued senior unsecured notes for net proceeds of $28.7 billion. Under its at-the-market program, it issued 12 million Class A and 24 million Class C shares for combined net proceeds of $12.4 billion.

The board declared a quarterly common dividend of $0.22 per share, payable Dec. 14, 2026, to holders of record as of Dec. 7. Purchases of property and equipment were $51.4 billion in the quarter, and trailing twelve-month free cash flow was $19.7 billion.

For the fourth quarter, analysts expected revenue of $142.72 billion and EPS of $3.38. The company did not provide guidance in the release.

Separately, Alphabet shares fell 12.3% on Thursday, Oct. 29, closing at $282.32. The S&P 500 fell 0.4% that session.

Sources

Written with AI from the company's results filing with the SEC, analysts' estimates where we had them, and our market data, and checked against those sources before publishing. Kratik Mehta reviewed it before it was published. Our editorial standards.

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Filings, figures and price history are on the Alphabet page.