[FLASH] Alphabet misses on revenue and EPS as lower AI Mode monetization slows Search; Cloud revenue doubles
Alphabet's Q3 revenue was $127.6B, below consensus. Search & other grew 12% to $63.35B, slowing from 17% in Q2. CBO Philipp Schindler said strong AI Mode query growth weighed on Search revenue because AI Mode monetizes less, but Google disclosed no AI Mode revenue, CPC or ad-load figures. Free cash flow was negative $9.1B for a second straight quarter, while Google Cloud revenue more than doubled to $30.7B. Reuters reported shares down about 10% after hours. CFO Anat Ashkenazi said 2027 capex will rise significantly without giving a figure. Google is expanding AI Mode ads to ten more markets and launching ads on AI Mode follow-up questions in the US, so the gap between query growth and Search revenue is the measure to watch.