Alphabet Loses $390 Billion Despite Cloud Surge

Alphabet Inc. shares dropped roughly 9.97% to $292.50 in after-hours trading on Wednesday, Oct. 28, 2026, erasing between $390 billion and $396 billion in paper value, according to YahooStocks5. The sell-off occurred despite the company reporting record quarterly figures driven by its cloud division.

Alphabet reported that total revenue rose 25% to $127.577 billion for the third quarter, while operating income climbed 30% to $40.576 billion. Google Cloud revenue surged 103% to $30.709 billion, and Cloud operating income approximately tripled to $11.121 billion from $3.594 billion. Chief Financial Officer Anat Ashkenazi stated that the Cloud operating margin rose from 23.7% to 36.2%, and noted a Google Cloud backlog of $561 billion.

Diluted EPS Miss and Capital Expenditure

Despite strong top-line growth, Alphabet reported diluted earnings per share of $2.12, down from $2.87 and missing consensus estimates of approximately $3.01. A disclosed $8.7 billion non-cash loss on equity securities reduced EPS by $0.55. Meanwhile, capital expenditures increased to $51.355 billion from $23.953 billion, resulting in negative free cash flow of $9.065 billion.

Chief Financial Officer Anat Ashkenazi confirmed that the 2026 capital expenditure guidance of $195 billion to $205 billion remains unchanged and expects spending to increase significantly in 2027 to support infrastructure expansion.

Key facts

• Alphabet Class A shares fell 9.97% to $292.50 in after-hours trading on Oct. 28, 2026.
• Google Cloud revenue increased 103% year-over-year to $30.709 billion.
• Alphabet total quarterly revenue rose 25% to $127.577 billion.
• Diluted EPS came in at $2.12, missing consensus estimates of about $3.01.
• Capital expenditures rose to $51.355 billion, driving free cash flow to negative $9.065 billion.