Alphabet drops 9% while Microsoft climbs on AI

Alphabet shares fell after earnings while Microsoft rose 4% on 48% Azure growth.

According to CNBC, The New York Times, The Verge and 9to5Google, Alphabet's Q3 revenue was $127.6B, up 25%. CNBC reported revenue and adjusted EPS ($2.67 vs. $3.02 expected) missed estimates, its first top-and-bottom-line miss in nearly four years. Net income fell to $26.17B from $34.98B, and free cash flow was negative $9.07B. The New York Times said the profit drop came from changes in the value of its investments; CNBC reported an $8.66B loss from equity holdings. CNBC's headline says shares sank 9%; its article text says more than 10%.

Alphabet's Q3 capex was $51.36B versus $55.09B expected. It maintained its 2026 forecast of $195B to $205B. Finance chief Anat Ashkenazi said capex will increase significantly in 2027, with details on the Q4 call. Google Cloud revenue rose 103% to $30.7B.

CNBC reported Microsoft stock rose 4% on better-than-expected results driven by 48% Azure growth. The New York Times reported profit rose 32%, with $45.2B spent on data centers and free cash flow still positive.

Watch Alphabet's Q4 call for the 2027 capex details.

“We continue to expect our capex to increase significantly in 2027, and will provide further details on our Q4 call.”Anat Ashkenazi, Alphabet finance chief

The facts we checked

According to CNBC, The New York Times, The Verge and 9to5Google

1. Alphabet Q3 2026 revenue was $127.6 billion, up 25% year over year.Fact · The Verge, 9to5Google, CNBC
2. CNBC reported Alphabet's revenue and adjusted EPS ($2.67 vs. $3.02 expected) missed analyst estimates, its first top-and-bottom-line miss in nearly four years.Reported · CNBC
3. Net income fell to $26.17 billion from $34.98 billion a year earlier.Figure · CNBC
4. The New York Times said Alphabet's profit dropped because of changes in the value of its investments. CNBC reported a loss of $8.66 billion from equity holdings in Q3.Reported · The New York Times, CNBC
5. Alphabet's Q3 capital expenditures totaled $51.36 billion; analysts expected $55.09 billion.Figure · CNBC
6. Alphabet maintained its full-year capex forecast of $195 billion to $205 billion, set in Q2.Reported · CNBC
7. "We continue to expect our capex to increase significantly in 2027, and will provide further details on our Q4 call," said finance chief Anat Ashkenazi.Quote · CNBC
8. Alphabet reported negative free cash flow of $9.07 billion in Q3.Figure · CNBC
9. Google Cloud revenue rose 103% to $30.7 billion.Fact · The Verge, 9to5Google, CNBC
10. CNBC's headline says Alphabet shares sank 9%; its article text says shares slumped more than 10%.Reported · CNBC
11. Microsoft stock rose 4% after it reported better-than-expected results driven by 48% growth in Azure revenue.Reported · CNBC
12. Microsoft's profit rose 32%.Reported · The New York Times
13. Microsoft spent $45.2 billion on data centers in the quarter, and its free cash flow stayed positive.Reported · The New York Times

Sources

• CNBCAlphabet sinks 9% as it holds 2026 capex unchanged, expects significant increase in 2027
• The New York TimesAlphabet’s Revenue Rises 25% as Profit Falls
• The VergeGoogle says its investments in AI are driving more searches
• 9to5GoogleAlphabet reports Q3 2026 revenue of $127.6 billion
• CNBCMicrosoft stock jumps 4% as cloud growth drives earnings and revenue beat
• The New York TimesMicrosoft’s Profit Jumps 32% Despite Big Increase in Spending