The company's search revenue reached roughly $63 billion, marking a second consecutive quarterly miss despite search volume climbing at its fastest rate in five years. Bottom-line performance suffered under aggressive infrastructure commitments, resulting in negative free cash flow of $9 billion. Offsetting the search drag, the cloud unit more than doubled its quarterly revenue to nearly $31 billion on rising enterprise appetite. Management reaffirmed a 2026 capital expenditure target reaching up to $205 billion, with outlays projected to expand further in 2027.
Key points
Alphabet's contracted cloud backlog climbed to roughly $560 billion, with more than half…: Alphabet's contracted cloud backlog climbed to roughly $560 billion, with more than half expected to be recognized within two years.
Capital expenditure targets for 2026 were maintained between $195 billion and $205 billio…: Capital expenditure targets for 2026 were maintained between $195 billion and $205 billion, with spending set to increase significantly in 2027.
Advertisers used the Gemini artificial intelligence model to generate over 1.5 billion ca…: Advertisers used the Gemini artificial intelligence model to generate over 1.5 billion campaign assets despite the broader monetization challenges.
Sources checked by our analysis pipeline: 1
In Alphabet's across-the-board earnings miss, one segment stood out above all else: search.
Revenue in the search and other segment grew 12% from a year ago to roughly $63 billion, but came in below estimates for the second straight quarter. At the same time, Google said search query growth on the platform was the strongest it's been in five years.
The gap between usage and revenue within the search giant's flagship business is becoming harder to dismiss as more people turn to artificial intelligence bots and agents, including tools offered by Google. Since the early days of ChatGPT, analysts have predicted that traditional search will get eclipsed by AI, and warned that Google will have to figure out new ways to make money. While search remains a massive business, early signs of a shift are appearing.
"These things are going to be a force," Deepwater Asset Management's Gene Munster told CNBC's "Fast Money" after the earnings report, referring to new AI-powered services. Munster said that if "personalized bots" take off, "that will become for a lot of people the starting…
The platform secured this major capital injection to finance an operational push outside of its foundational prediction trading space. With an expanded war chest, the firm aims to build out new business lines that diversify its financial footprint. The massive valuation underscores soaring private investor confidence in the growth trajectory of regulated alternative exchange models.
Over the past three consecutive years, America's standard role as a dependable engine for job creation has broken down. This prolonged departure from traditional labor dynamics has created growing concerns about what lies ahead. Economists warn that the long-term fallout from this persistent shift could ultimately influence the broader economy for years to come.
The mega-merger unites two major on-demand delivery platforms to create a stronger defense against retail titans Amazon and Walmart. Absorbing extensive supermarket partnerships allows the combined entity to bolster its grocery footprint while navigating escalating cross-category pressure from rivals like Uber. This strategic expansion marks a critical shift for the courier sector as delivery boundaries between prepared food and household essentials rapidly blur.