Google's 2026Q3 earnings report reveals AI monetization anxiety, stock price drops over 7% after hours

Alphabet, Google's parent company, released its third-quarter financial report for fiscal year 2026, with revenue increasing by 25% to $127.6 billion, but earnings per share of $2.12 were far below expectations, and ad revenue failed to meet expectations, causing the stock price to drop more than 7% after hours. The main reason for the profit pressure is an $8.7 billion loss from equity investments, and capital expenditures for the quarter increased by a large margin to $51.4 billion year-on-year, raising market concerns about the difficulty of realizing returns on AI investments.