Updated 29 October 2026. Alphabet (GOOGL) Class A shares traded at $292.50 after hours at 7:59 pm ET on Wednesday 28 October, down $32.39 or 9.97 percent from the $324.89 close, after its third-quarter report (StockAnalysis). Verdict: the business beat the narrative – revenue up 25 percent, Google Cloud up 103 percent – but the cash flow did not. Capital spending of $51.4 billion pushed free cash flow to negative $9.1 billion, search growth slowed to 12 percent, and the company has bought back no stock this year. The market is repricing Alphabet as a builder that has to borrow. Reference levels: $266.50 below, $325 above.
Key facts
- Price: GOOGL closed at $324.89 on 28 October, up 1.34 percent, then traded at $292.50, down 9.97 percent, at 7:59 pm ET (StockAnalysis). At 4:41 pm ET it was at $294.20, down 9.4 percent (StockTitan). The 52-week range is $266.50 to $408.61.
- Revenue: $127.58 billion, up 25 percent from $102.35 billion, slightly below the roughly $128.2 billion consensus (Alphabet release via StockTitan; consensus per The Motley Fool).
- Segments: Search and other $63.35 billion, up 12 percent (17 percent in the second quarter); YouTube ads $11.21 billion, up 9 percent; Google Cloud $30.71 billion, up 103 percent, with $11.1 billion of operating income at a 36.2 percent margin (StockTitan).
- Profit: operating income rose 30 percent to $40.58 billion, a 31.8 percent margin. Diluted EPS fell to $2.12 from $2.87, after an $8.66 billion loss on equity securities that cut EPS by $0.55 (StockTitan). Management tied the loss mainly to the unrealised mark on its SpaceX stake (earnings call, via BigGo Finance).
- Capex and cash: capital expenditure was $51.36 billion, up from $23.95 billion, and $132.0 billion over nine months. Free cash flow was negative $9.07 billion, against $24.46 billion a year earlier and negative $5.86 billion in the second quarter (StockTitan). The quarter included a $5.2 billion payment for a 2018 EU fine and an inventory build of TPU systems (BigGo Finance).
- Funding: Alphabet sold $28.7 billion of notes in the quarter and raised $12.4 billion net through an at-the-market share programme. It made no buybacks in 2026, against $11.5 billion in the third quarter of 2025. The $0.22 dividend is payable on 14 December (StockTitan).
- Guidance: 2026 capex stays at $195 billion to $205 billion; CFO Anat Ashkenazi said capex will “increase significantly in 2027”. Cloud backlog was $561 billion, just over 55 percent of it expected within 24 months (earnings call, via BigGo Finance).
Why a 25 percent revenue quarter fell 10 percent
The pre-results setup, as covered on our Google stock prediction page, hinged on whether Cloud could carry the capex. On revenue it did: Cloud doubled and its margin rose by 12.5 points. The problem is timing. Alphabet now spends more on capital in a quarter than Google Cloud earns in revenue, and its trailing 12-month free cash flow has fallen to $19.75 billion from $73.55 billion (StockTitan). A company that used to fund buybacks from cash flow is funding data centres with bonds and new shares.
Search is the second pressure point. Growth slowed from 19 percent in the first quarter to 17 and now 12 percent, and management warned of a couple more points of tougher comparisons in the fourth quarter (BigGo Finance). Sundar Pichai pointed to the Gemini app passing 1 billion users and query growth at a five-year high, but the revenue line has not followed yet. When the core profit engine slows while capex accelerates, investors pay less for each dollar of earnings – which is what the after-hours price did.
The read-across
For the AI supply chain the spending news was supportive: Alphabet’s capex plan is intact and rising into 2027, as discussed on today’s Nvidia page. Microsoft, which reported the same night, rose after hours on a 48 percent Azure quarter. Amazon reports after Thursday’s close and completes the hyperscaler picture.
GOOGL after Q3: bull, base and bear
| Scenario | GOOGL | What has to happen | Anchor |
|---|---|---|---|
| Bear | $266.50 | The after-hours drop extends as analysts cut targets on free cash flow, Amazon also disappoints, and the AI-capex trade de-rates. | The 52-week low, about 8.9 percent below the $292.50 after-hours quote. |
| Base | $285-$305 | The stock holds most of the drop while the market weighs Cloud’s 103 percent growth against negative free cash flow. | About $7.50 below to $12.50 above the $292.50 after-hours quote. |
| Bull | $325 | Buyers treat the cash drain as timing – TPU inventory and a one-off EU fine – and close the gap as the $561 billion backlog converts. | Wednesday’s $324.89 close, about 11.1 percent above the after-hours quote. |
The bear case sits below the after-hours price. These are reference levels measured from verified quotes, not forecasts. The pre-results analyst average of $429.68 from 60 analysts (StockAnalysis) is likely to move once targets are revised.
What to watch
- Thursday 29 October, premarket and open: whether the roughly 10 percent after-hours drop holds.
- Thursday: analyst target revisions on free cash flow and the 2027 capex outlook.
- Thursday after the close: Amazon results, the third hyperscaler capex read.
- Coming days: Alphabet’s third-quarter 10-Q, with the detail behind the equity-securities loss.
- 14 December: payment of the $0.22 quarterly dividend.
Quick take: Alphabet fell to $292.50 after hours, down about 10 percent from its $324.89 close, after a quarter with 25 percent revenue growth and a doubling of Google Cloud but negative $9.1 billion of free cash flow, slower search growth and no buybacks. Expect $285-$305 while the market decides whether the cash drain is timing or trend. A gap-fill opens $325; a broader AI-capex de-rating opens the $266.50 52-week low.
FAQ
Why is Alphabet stock down today?
Alphabet fell about 10 percent after hours on 28 October after third-quarter free cash flow came in at negative $9.07 billion, EPS fell to $2.12, search growth slowed to 12 percent and capex reached $51.36 billion (StockTitan; StockAnalysis).
What is Google’s stock price today?
GOOGL traded at $292.50 after hours at 7:59 pm ET on 28 October 2026, after closing at $324.89 (StockAnalysis).
How much did Google Cloud grow?
Google Cloud revenue rose 103 percent to $30.71 billion in the third quarter, with operating income of $11.1 billion (Alphabet release via StockTitan).
How much is Alphabet spending on AI?
Capital expenditure was $51.36 billion in the third quarter and $132.0 billion over nine months. Alphabet kept its 2026 range at $195 billion to $205 billion and said 2027 spending will increase significantly.
Why was Alphabet’s free cash flow negative?
Capex of $51.36 billion exceeded operating cash flow of $42.29 billion. The quarter also included a $5.2 billion EU fine payment and a build-up of TPU system inventory.
Is Alphabet still buying back stock?
No. Alphabet made no buybacks in the third quarter or so far in 2026, and raised $12.4 billion through an at-the-market share programme in the quarter (StockTitan).
Sources: The Motley Fool (revenue consensus); StockAnalysis (28 October close, after-hours quote at 7:59 pm ET, 52-week range, pre-results analyst consensus); Alphabet third-quarter 2026 release and filings via StockTitan (revenue, segments, operating income, EPS, equity-securities loss, capex, free cash flow, debt and share issuance, buybacks, dividend, 4:41 pm quote); Alphabet earnings call via BigGo Finance (SpaceX attribution, EU fine, TPU inventory, backlog, guidance, management comments).
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Stock prices are volatile. Do your own research and consult a licensed financial adviser before making investment decisions.