Alphabet Shares Plunge as Q3 Profit Slumps 25% Amid Heavy AI Spending

Alphabet shares fell over 10% in after-hours trading after reporting a 25% drop in net profit to $26.2 billion for the July-September period.

Quarterly revenue rose 25% to $127.6 billion, while advertising revenue grew 11% to $82.0 billion, both falling slightly short of analyst forecasts.

Capital expenditures surged to $51.4 billion during the quarter, driven by data centers and AI investments, with 2026 spending forecast between $195 billion and $205 billion.