Back to articles
DevPickView feed
ITmedia
Original published:

Alphabet revenue up 25% but net income down 25%; Google Cloud revenue up 103% amid increased AI investment burden

Alphabet revenue up 25% but net income down 25%; Google Cloud revenue up 103% amid increased AI investment burden
AI summary
Editorial policy

Alphabet's Q3 revenue rose 25% to $127.5 billion, but net income fell 25% due to AI investment costs turning free cash flow negative.

Key points

  • •Revenue increased by 25% to $127.5 billion, while net income decreased by 25% due to losses from SpaceX stock and other factors
  • •Google Cloud revenue surged 103%, but massive AI infrastructure investments caused free cash flow to turn negative
  • •The stock price dropped over 10% in after-hours trading following the earnings release
Read the original(opens in a new tab)
#AI Companies & Funding#Major Players#Alphabet#Google Cloud

Related articles

See more
The Verge

Google hasn’t figured out how to make AI pay like its search engine

Alphabet's earnings report shows search queries growing at the fastest rate in five years, but Q3 search revenue growth slowed to 12% year-over-year, highlighting challenges in monetizing AI.

TechCrunch

Google expands AI Search ads globally as core ad growth slows

Alphabet's third-quarter revenue grew 25% year over year to $127.6 billion, despite slowing growth in core advertising.

The Verge

Google says its investments in AI are driving more searches

Alphabet stated in its Q3 2026 earnings that its investments in AI are driving significant year-over-year growth in search queries.

Publickey

AWS and Google Cloud release open-source versions of PyTorch supporting AWS Trainium and Google Cloud TPU, challenging the transition from NVIDIA

At PyTorch Conference 2026 in California, AWS and Google Cloud sequentially announced open-source versions of PyTorch supporting their respective AI processors, aiming to facilitate migration from NVIDIA.

ITmedia AI+

OpenAI models including "Astra" added to Google Cloud: Becomes the "Only Hyperscaler Where Closed Models from the Big 3 Can Be Used"

Three new OpenAI models were added to Google Cloud's Model Garden, making it the only hyperscaler offering closed models from the top three companies.