Alphabet Q3: Cloud doubles to $30.7B but free cash flow stays negative at -$9.1B
rohanpaul_ai · x · 2026-10-29
Investor Prakash Damodaran breaks down Alphabet's Q3 2026 earnings: revenue grew 25% to $127.6B, but EPS of $2.12 badly missed the $3.03 anchor (an $8.7B securities loss cut $0.55), and free cash flow printed -$9.1B for a second straight quarter with buybacks at zero.
Key numbers: Google Cloud revenue doubled to $30.7B with a 36.2% operating margin and backlog rising to $561B; Search growth slowed to 12% from 17%; quarterly capex hit $51.4B with 2026 guidance held at $195-205B and no 2027 figure given. Shares fell 8.6% after hours to $297.02. He'd consider adding below $270, watching the $310-318 and $255-267 accumulation zones.
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