Pichai shares Google's Q3 numbers; while Musk says 'wow', Wall Street ‘not happy’
Alphabet reported strong revenue growth in Q3 2026, but shares fell nearly 10% due to investor concerns over high AI infrastructure spending and missed profit projections. Despite the growth in cloud and search, the company's massive capital expenditures and debt increase have unsettled Wall Street.
Why it matters
The market reaction reflects growing skepticism regarding the immediate profitability of massive AI-related capital investments by big tech firms.
Google reported its third-quarter 2026 financial results on October 28. Sharing the Q3 numbers, Google CEO Sundar Pichai wrote on X (formerly Twitter): “Q3 is in the books! We’re now on a half-trillion annual revenue run rate, with Alphabet revenues growing at 25%”. This caught Elon Musk’s attention who replied to Sundar Pichai’s post on Google results with a ‘Wow’. But Wall Street seems to be ‘not happy’ with the Google results. Hours after the earnings result, shares of Alphabet's fell nearly 10% reportedly because the company missed profit projections and increased its AI spending past $50 billion in the third quarter. As stated in a Semafor report, the “resulting cash burn stoked investors' fears that hyperscalers aren't generating enough revenue to justify their debt-fueled infrastructure investments”.Google Q3 results in numbers that made Wall Street ‘unhappy’Google-parent Alphabet reported negative free cash flow of $9.07 billion during the third quarter.
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