Alphabet reports third-quarter revenue of $128.09 billion, below expectations

Earnings per share were $2.12 on a GAAP basis, the standard US accounting rules, and the company's chief executive credited query growth, cloud demand and Gemini adoption.

Alphabet reported third-quarter revenue of $128.09 billion. That was below the $132.02 billion the company had been expected to report. Earnings per share were $2.12 on a GAAP basis.

Sundar Pichai, chief executive of Google and Alphabet, said growth came from the highest query growth rate in five years, strong cloud demand for AI infrastructure and TPU systems, and rapid adoption of Gemini.

In the third quarter, Alphabet issued senior unsecured notes for net proceeds of $28.7 billion, to be used for general corporate purposes. It also sold 12 million Class A shares for net proceeds of $4.3 billion and 24 million Class C shares for net proceeds of $8.1 billion through its at-the-market program, which sells stock at prevailing prices. That leaves $27.6 billion available for future sales under the program.

The company has been raising its spending on power and compute. On October 6, those commitments included the Constellation Energy nuclear deal and the Black Hills Wyoming buildout. That infrastructure is now being funded more by new equity and the $28.7 billion of senior notes than by operating cash flow. That puts more weight on Pichai's case that query growth, cloud demand and Gemini adoption will pay back the spending. Google's AI push is also under separate scrutiny, including a Senate inquiry into AI in schools. That adds pressure at a time when the growth story needs to hold.