Alphabet shares fell more than 7% in after-hours trading after Google's parent reported a sharp fall in free cash flow for the third quarter, CNBC reports.
Revenue grew 25%, the fastest rate since 2021, but net income fell to $26.17bn from $34.98bn a year earlier, partly because of an $8.66bn loss on equity holdings, including stakes in SpaceX and Anthropic, that had boosted the previous quarter. Free cash flow came in well below analysts' expectations as AI spending continued, with capital expenditure of $51.36bn.
Cloud revenue more than doubled to $30.7bn, ahead of forecasts, and Google said its Gemini app had reached one billion users. Search revenue rose 12% to $63.35bn but missed estimates. Alphabet expects annual capital spending to top $200bn this year and exceed $300bn in 2027.
Source: CNBC
