The technology giant posted a drop in net income to $26.2 billion, down from $35 billion a year earlier, after equity security losses reduced earnings. Total revenue nevertheless expanded 25% year-on-year to $127.6 billion, pushing the company's annual run rate to $500 billion. Google Cloud led the expansion by doubling its revenue to $30.7 billion on the back of rising artificial intelligence infrastructure and tensor processing unit demand. Meanwhile, investments in AI lifted Search query growth to its fastest pace in five years.
Key points
Disappointing results and ongoing advertising concerns can severely dampen market sentime…: Disappointing results and ongoing advertising concerns can severely dampen market sentiment despite strong gains in overall company revenue.
Surging demand for cloud computing and specialized artificial intelligence infrastructure…: Surging demand for cloud computing and specialized artificial intelligence infrastructure is emerging as the primary engine of top-line operational growth.
Volatility from external equity securities holdings can significantly distort overall net…: Volatility from external equity securities holdings can significantly distort overall net profit figures even when underlying operating income continues to rise.
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Alphabet Inc. shares: Alphabet’s shares came under sharp selling pressure after the company reported third-quarter results that fell short of Wall Street’s expectations, with its advertising business raising concerns among investors. GOOG shares plunged more than 10% in after-hours trading on Wednesday, 28 October.
Alphabet shares had been under pressure since the company’s July earnings announcement and came under further selling pressure in after-hours trading following its latest results.
Alphabet posted a 25% year-on-year (YoY) rise in revenue to USD 127.6 billion in the September quarter, driven by robust performance in Google Cloud and Search. The technology giant also announced that its annual revenue run rate had reached $500 billion.
According to its earnings release, the company extended its streak of double-digit revenue growth to 13 consecutive quarters. Operating income increased 30% YoY to $40.6 billion, while the operating margin came in at 31.8%.
However, net income attributable to common stockholders fell to $26.2 billion from $35 billion in the corresponding quarter last year. Diluted earnings per share (EPS) also declined to $2.12 from $2.87. Alphabet attributed the decline to…
Investor interest in the automotive powertrain manufacturer surged following robust financial results for the quarter ended September 2026. The company doubled its net profit and widened operating margins alongside announcing deeper strategic control over its international operations. This operational rebound provides strong momentum following the company's public market debut in late September.
Market participants observed significant downward pressure on Hitachi during today's trading session as the company's equity experienced a sharp drop. The sudden valuation decline has captured market attention across the financial sector today. However, comprehensive details regarding the exact underlying drivers behind the move remain limited based on the initial trading update.
Hitachi shares have declined following the release of the company's second-quarter financial results. A drop in quarterly profit weighed heavily on investor sentiment, overshadowing the company's strong top-line revenue performance.