Alphabet reported a second consecutive quarter of negative free cash flow, at $9.1 billion, and quarterly revenue below analysts’ estimates. In the third quarter of 2026, revenue came in at $127.6 billion, while capital spending reached a record $51.4 billion, primarily for the data centers, chips, and equipment needed for artificial intelligence. Shares fell by at least 10% during regular and after-hours trading following the release, and Alphabet also missed revenue estimates for its search business. CFO Anat Ashkenazi said spending could exceed $300 billion in 2027, after the company disclosed purchase commitments of more than $1 trillion. Google Cloud delivered strong year-over-year revenue growth driven by demand for artificial intelligence services, while Alphabet paused share buybacks and increased its reliance on debt and equity issuance.
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