Alphabet (NASDAQ:GOOGL) Posts Quarterly Earnings Results, Misses Expectations By $0.90 EPS

Posted by Brian Himes on Oct 30th, 2026

Alphabet (NASDAQ:GOOGL – Get Free Report) announced its earnings results on Wednesday. The information services provider reported $2.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.02 by ($0.90), Zacks reports. Alphabet had a net margin of 50.03% and a return on equity of 46.63%. The business had revenue of $127.58 billion for the quarter, compared to analysts’ expectations of $127.96 billion.

Alphabet Stock Performance

GOOGL traded down $2.47 on Friday, reaching $281.35. The company had a trading volume of 20,107,987 shares, compared to its average volume of 30,915,609. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $3.44 trillion, a PE ratio of 14.66, a P/E/G ratio of 0.94 and a beta of 1.21. The stock has a 50-day moving average price of $340.29 and a 200-day moving average price of $340.43. Alphabet has a 1 year low of $270.70 and a 1 year high of $408.61.

Wall Street Analyst Weigh In

Several equities analysts have commented on GOOGL shares. Zacks Research downgraded Alphabet from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 11th. Sanford C. Bernstein reiterated a “market perform” rating and set a $325.00 price objective (down from $385.00) on shares of Alphabet in a research note on Thursday. Morgan Stanley restated an “overweight” rating and set a $375.00 price objective (down from $400.00) on shares of Alphabet in a report on Thursday. Barclays restated an “overweight” rating and issued a $405.00 target price (down from $425.00) on shares of Alphabet in a research note on Thursday. Finally, Wedbush dropped their price target on shares of Alphabet from $445.00 to $387.00 and set an “outperform” rating on the stock in a research note on Thursday. Five equities research analysts have rated the stock with a Strong Buy rating, forty-six have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Alphabet currently has an average rating of “Buy” and a consensus price target of $412.82.

View Our Latest Stock Report on Alphabet

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

Positive Sentiment: Google Cloud and AI demand remain strong. Cloud revenue more than doubled year over year to approximately $30.7 billion, while its backlog reached $561 billion. Reported and potential commitments from Anthropic and OpenAI’s interest in Google’s TPU chips could support future cloud and AI infrastructure revenue. Alphabet’s Cloud Business Just Doubled
Positive Sentiment: Underlying operating growth was better than the headline EPS. Revenue increased 25% to $127.6 billion, search queries grew at their fastest pace in five years, and a paper loss on Alphabet’s SpaceX investment reduced earnings by roughly $0.55 per share. Several analysts retained positive ratings despite lowering price targets. Alphabet: 3 Key Takeaways for Long-Term Investors
Neutral Sentiment: Alphabet continues expanding its AI ecosystem. Gemini 4 Carbon, AI Search advertising and international Waymo expansion provide longer-term growth opportunities, although Waymo and other “Other Bets” generated limited revenue and substantial operating losses. As Waymo Expands Overseas
Negative Sentiment: Alphabet missed on both earnings and revenue. EPS was $2.12 versus expectations near $3.02, while revenue was slightly below forecasts. Search and other revenue grew 12% to about $63 billion but missed estimates for a second consecutive quarter; YouTube advertising also fell short. Alphabet Earnings Miss Reflects AI Impact on Search
Negative Sentiment: AI spending is consuming cash faster than expected. Free cash flow turned negative by roughly $9.1 billion, as Alphabet maintained heavy capital spending to expand data-center and cloud capacity. Investors are questioning whether AI returns will justify the spending, debt and future purchase commitments. Alphabet Falls After Larger Cash Flow Shortfall
Negative Sentiment: Analyst caution and legal headlines add pressure. Multiple firms lowered price targets, citing slower search monetization and cash burn. Several law firms also publicized securities class-action deadlines tied to alleged AI disclosures, though these notices have limited immediate financial impact. Alphabet Securities Class Action Notice

Insider Activity at Alphabet

In related news, Director Frances Arnold sold 83 shares of the stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $340.45, for a total transaction of $28,257.35. Following the completion of the transaction, the director directly owned 19,076 shares of the company’s stock, valued at $6,494,424.20. This represents a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 11.61% of the company’s stock.

Alphabet Company Profile

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Alphabet Inc is a technology holding company best known for its Google subsidiary. Google operates a global internet-services business centered on online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a broad range of cloud-based productivity and collaboration tools.

Google Cloud provides infrastructure, data analytics, cybersecurity, artificial intelligence, and enterprise software services to businesses, governments, and other organizations. Alphabet also develops consumer hardware, including Pixel devices and products for connected homes, while investing in emerging businesses through its “Other Bets” segment, including autonomous transportation and life sciences initiatives.

Alphabet was established in 2015 as part of a corporate restructuring that made Google a subsidiary and provided a separate structure for its expanding portfolio of businesses.