Alphabet has unveiled its financial results for the third quarter of 2026, revealing a quarterly revenue of $127.6 billion, which represents a 25% year-on-year surge. This achievement marks the 13th straight quarter of double-digit revenue growth, with the annualized revenue run rate hitting $500 billion, albeit slightly shy of Wall Street's projections. Notably, Google Cloud's revenue witnessed a remarkable 103% year-on-year spike, reaching $30.7 billion. This growth rate has picked up even more pace since the second quarter, primarily fueled by the robust demand for enterprise AI-related services. Meanwhile, Google Services' revenue climbed by 11% to $96.3 billion, with both search advertising and YouTube advertising segments experiencing growth. The search query growth rate soared to a five-year peak. When it comes to profitability, the net income for the quarter stood at $26.2 billion, showing a roughly 25% year-on-year decline. This drop was mainly attributable to an $8.7 billion loss on equity securities investments. Nevertheless, the operating profit surged by 30% year-on-year to $40.6 billion, and the operating profit margin expanded to 31.8%. The company reiterated its full-year capital expenditure guidance, keeping it within the range of $195 billion to $205 billion. However, the free cash flow for the quarter turned negative. Following the release of these earnings, Alphabet's stock price took a nosedive, plummeting by 9.84% in after-hours trading. The market voiced its concerns over the revenue and profit falling short of expectations, the decelerating advertising growth, and the cash flow pressures arising from the substantial capital expenditures.