GOOGL Q3 Earnings Miss Estimates, Cloud & Search Aid Top-Line Growth

Alphabet reported Q3 2026 revenues of $127.58B (+25% YoY) but missed EPS expectations at $2.12 (-26% YoY) due to unrealized losses on equity investments. Google Cloud surged 103% with a $561B backlog, but AI capital expenditures more than doubled to $51.36B, resulting in negative free cash flow of $9.07B. The company maintained 2026 capex guidance of $195-205B with expectations for significant increases in 2027.