Alphabet's Q3 2026 Results Show Strong Growth but AI Spending Worries Investors

Alphabet reported strong Q3 2026 revenue growth across Search, Cloud, and AI, but shares fell nearly 10% as investors worried about rising AI infrastructure spending and weak cash flow. Google CEO Sundar Pichai announced results on October 28, citing a 25% revenue increase and a half-trillion-dollar annual run rate. Alphabet posted negative free cash flow of $9.07 billion, missing analyst expectations, while long-term debt surged to $125.1 billion from $21.6 billion a year earlier. Despite concerns, Google Cloud revenue jumped 103% to $30.7 billion, and the Gemini app reached one billion users. Waymo expanded to 15 US cities with planned international growth, though profitability and cash generation remain key investor worries.