# Why Google stock fell after Q3 earnings: what the report shows

> Alphabet dropped about 10% after hours despite a doubling in Google Cloud revenue. The release shows a revenue miss, negative free cash flow and lower net income.

URL: https://claudegpt.si/news/why-google-stock-fell-after-q3-earnings  
Published: 2026-10-28T22:53:46.387Z  
Author: ClaudeGPT Si Newsroom  
Section: AI News  
Topics: Alphabet, Google Cloud, Earnings, Stocks  
Publisher: ClaudeGPT Si

## Key takeaways

- Alphabet fell about 10% after hours on October 28, from a $324.89 close to $292.93 at 6:49 p.m. ET.
- The release shows revenue of $127.6 billion against $128.2 billion expected, and free cash flow of negative $9.1 billion.
- Google Cloud revenue still rose 103% to $30.7 billion.

Alphabet shares fell about 10% in after-hours trading on October 28 after the company reported third-quarter results. The stock closed at $324.89 and was quoted at $292.93 around 6:49 p.m. ET, per Yahoo Finance. Alphabet's [earnings release](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000080/googexhibit991q32026.htm) shows a revenue miss, negative free cash flow and lower net income, alongside Google Cloud revenue that doubled.

Alphabet does not say why the stock moved. The reasons below are what the release shows and what named outlets reported. They are not predictions, and after-hours prices can change by the next open.

## What the release shows

- Revenue was $127.6 billion, up 25%, below the $128.2 billion analysts expected, per [Techmeme's summary](https://www.techmeme.com/261028/p49#a261028p49) of the release.
- Free cash flow was negative $9.1 billion, a second straight negative quarter after negative $5.9 billion in the second quarter.
- Purchases of property and equipment, mostly data centers and chips, were $51.4 billion, up from $24.0 billion a year earlier.
- Net income fell to $26.2 billion from $35.0 billion, as other income swung to an $8.2 billion expense.
- Alphabet raised $12.4 billion from stock sales and $28.7 billion from notes in the quarter.

## What outlets pointed to

The Information reported that [core Google Services revenue grew less than 11%](https://www.theinformation.com/briefings/google-quarterly-revenue-grows-25-falls-short-expectations), the slowest rate since early 2025, and tied the reaction to spending on AI data centers. Variety reported YouTube ad revenue of $11.2 billion, [below estimates](https://www.techmeme.com/261028/p50#a261028p50). Yahoo Finance's headline put it as cloud booming while search growth slows.

## What went well

Google Cloud revenue rose 103% to $30.7 billion, with operating income of $11.1 billion. Search and other revenue grew 12%, and Alphabet says query growth was the highest in five years. The full numbers are in our [Alphabet earnings report](https://claudegpt.si/news/alphabet-q3-2026-earnings-cloud-doubles).

## What to check next

Compare with Microsoft, which [reported the same evening](https://claudegpt.si/news/microsoft-q1-fy2027-earnings-azure) and traded higher after hours. Alphabet's 10-Q for the quarter will give more detail. This article reports prices and results only.

## Frequently asked questions

### Why did Google stock go down after earnings?

Alphabet's third-quarter revenue of $127.6 billion came in below analyst estimates of $128.2 billion, free cash flow was negative $9.1 billion and net income fell. Alphabet itself did not explain the move.

### How much did Alphabet stock fall after hours?

From a $324.89 close on October 28 to $292.93 at about 6:49 p.m. ET, roughly 10%, per Yahoo Finance.

### Did Google Cloud grow in Q3 2026?

Yes. Google Cloud revenue rose 103% to $30.7 billion, and its operating income was $11.1 billion.

## Sources

- [Alphabet Announces Third Quarter 2026 Results](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000080/googexhibit991q32026.htm), Alphabet via SEC EDGAR
- [GOOGL quote](https://finance.yahoo.com/quote/GOOGL/), Yahoo Finance
- [Google Quarterly Revenue Grows 25% But Falls Short of Expectations](https://www.theinformation.com/briefings/google-quarterly-revenue-grows-25-falls-short-expectations), The Information