Alphabet Shares Sink More Than 10% After First Double Earnings Miss in Nearly Four Years

Alphabet shares tumbled more than 10% in after-hours trading on October 28 after the Google parent reported its first top-and-bottom-line miss in nearly four years. Adjusted earnings per share came in at $2.67 against the $3.02 Wall Street expected, while revenue of $127.58 billion fell just short of the $128.22 billion consensus. Revenue still grew 25% year over year, but net income dropped to $26.17 billion, or $2.12 per share, from $34.98 billion, or $2.87 per share, a year earlier.

The sharpest concern for investors was free cash flow, which turned negative at -$9.07 billion for the quarter, far worse than the -$2.70 billion analysts had forecast. Capital expenditures reached $51.36 billion in Q3, below the $55.09 billion expected, and Alphabet held its full-year capex forecast at $195 billion to $205 billion. The company signaled that annual spending would top $200 billion before rising further past $300 billion in 2027, with CFO noting that capex is expected to increase significantly next year.

Elsewhere in Asian markets on October 29, Advantest shares surged more than 8% after the semiconductor test equipment maker raised its full-year outlook, citing robust market conditions it expects to continue into 2027. In India, the BSE Sensex jumped roughly 600 points and the Nifty approached 22,900, generating approximately 3 lakh crore rupees in market-cap gains. United Breweries shares gave back early gains and fell nearly 3% despite reporting Q2FY27 net profit up 191% year over year and revenue growth of 23.7%, as investors took profits after the strong results.