TLDRAlphabet stock drops 8.90% after hours as Q3 earnings miss Wall Street estimates.Alphabet revenue jumps 25% to $127.6 billion, but investment losses hit earnings.Google Cloud revenue surges 103% to $30.7 billion on strong enterprise demand.Alphabet EPS falls to $2.12 as an $8.7 billion investment loss weighs on profits.Google Search revenue grows 12% as Alphabet shares plunge after quarterly results.Alphabet Inc. (GOOG) shares faced sharp after-hours selling despite strong revenue growth and record Google Cloud performance in the third quarter of 2026. The company reported $127.6 billion in revenue, up 25% year over year, while an $8.7 billion investment loss weighed on earnings. Consequently, diluted earnings per share fell to $2.12, missing analysts’ expectations and pressuring Alphabet’s stock after the market closed.Alphabet Stock Falls as Investment Losses Hit EarningsAlphabet shares gained 1.60% to $321.89 at the regular market close before falling 8.90% to $293.25 in after-hours trading. The decline followed quarterly results that showed strong business growth but weaker reported profitability. Meanwhile, the company’s market capitalization stood at approximately $3.9 trillion.Alphabet Inc., GOOGAlphabet generated $127.577 billion in revenue for the quarter ended September 30, 2026, compared with $102.346 billion a year earlier. However, diluted earnings per share dropped to $2.12 from $2.87 during the same period. The company attributed much of the earnings pressure to unfavorable changes in investment-related income.Alphabet recorded an $8.7 billion loss on equity securities, compared with a $10.7 billion gain in the third quarter of 2025. This reversal affected the company’s reported earnings despite stronger operating performance across its core businesses. Nevertheless, operating income increased to $40.576 billion from $31.228 billion, while operating margin improved to approximately 31.8%.Google Cloud Revenue Doubles as Enterprise Demand ExpandsGoogle Cloud delivered Alphabet’s strongest segment growth, with quarterly revenue climbing 103% to $30.709 billion. The segment benefited from rising demand for computing infrastructure, enterprise services, and systems supporting advanced AI workloads. As a result, Google Cloud contributed significantly to Alphabet’s overall revenue expansion.Cloud operating income also increased substantially, reaching $11.121 billion compared with $3.594 billion a year earlier. This improvement reflected stronger revenue alongside greater profitability within the business. Google Cloud’s results highlighted its growing contribution to Alphabet’s earnings and its expanding role in enterprise technology spending.Alphabet’s broader Google Services division generated $96.302 billion in revenue, representing an 11% annual increase. Google Search and other revenue rose to $63.350 billion from $56.567 billion, while YouTube advertising revenue reached $11.207 billion. Together, these results demonstrated continued demand across Alphabet’s established advertising businesses and newer cloud offerings.Search Growth and Advertising Support Alphabet’s Revenue ExpansionGoogle advertising revenue increased to $82.012 billion from $74.182 billion in the prior-year quarter. Search remained the largest contributor, supported by stronger query activity and continued demand from advertisers. Meanwhile, YouTube advertising revenue advanced from $10.261 billion to $11.207 billion.Google subscriptions, platforms, and devices generated $14.290 billion, up from $12.870 billion a year earlier. Consequently, total Google Services revenue reached $96.302 billion, reinforcing the division’s importance to Alphabet’s financial performance. However, Google Network revenue increased only slightly, rising to $7.455 billion from $7.354 billion.Alphabet also reported $26.170 billion in net income available to common stockholders, compared with $34.979 billion in the previous year’s quarter. The company’s operating income growth contrasted with this decline in net income because investment-related losses affected the bottom line. Overall, Alphabet delivered strong revenue and cloud growth, but weaker reported earnings triggered a sharp after-hours stock decline. The post Alphabet Inc. (GOOG) Stock: AI and Cloud Growth Surge as $8.7 Billion Investment Loss Hits Earnings appeared first on Blockonomi.