# Alphabet shares slump as profit falls and advertising growth slows

- URL: https://talkfuse.com/story/investors-turn-on-google-owner-alphabet-after-profit-miss-ad-slowdown-and-high-spending/
- Published: 2026-10-28T23:39:12+00:00
- Updated: 2026-10-29T08:27:18+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/technology/2026/oct/28/google-alphabet-q3-earnings-report
- Topics: Business, Companies, Markets, Technology

## Key points

- Alphabet shares fell more than 10% after its profit missed expectations.
- Advertising growth slowed, while Google Cloud revenue more than doubled.
- AI investment drove quarterly capital spending to $51.4bn.

## Summary

Alphabet’s shares fell more than 10% in after-hours trading after the Google owner reported a sharp drop in profit, slower advertising growth and revenue slightly below forecasts. The results raised concerns about whether its heavy investment in AI can deliver returns quickly, even as the company’s cloud business expanded rapidly.

Net profit fell 25% year on year to $26.2bn, while revenue rose 25% to $127.6bn. Advertising revenue increased 11% to $82bn; search growth slowed to 12%, and YouTube advertising growth eased to 9%. Google Cloud revenue more than doubled to $30.7bn, helped by sales of its AI chips, while quarterly capital spending reached $51.4bn and Alphabet forecast $195bn to $205bn for 2026.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.