Alphabet Q3 revenue up 25% but stock drops 12% on weak EPS

Alphabet reported Q3 2026 revenue of about $128 billion, up 25% year over year, with net income above $26 billion but nearly $9 billion lower than a year ago. EPS came in at $2.12 versus the $3.02 consensus, and the stock fell almost 12%. Google admitted AI Mode queries earn less than traditional search and is expanding ads in AI Mode.

• Q3 revenue about $128B, up 25% year over year
• EPS $2.12 vs $3.02 expected; stock down 12%
• Search growth slowed to 12% from 17% in Q2
• Q3 capex $51.4B; 2027 AI investment target above $300B