Alphabet plummets more than 10% after lower-than-expected balance sheet and higher investment forecast in 2027
Revenue and profit fell short of projections in the 3rd quarter, for the first time in almost four years, according to Times Brasil.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM TIMES BRASIL · 2 MIN
Alphabet shares fell more than 10% after the release of the balance sheet, according to Times Brasil. The quarterly result was below what the market expected in terms of revenue and profit, something that had not happened in almost four years.
Adjusted earnings per share totaled US$ 2.67, against US$ 3.02 expected, according to LSEG cited by the same vehicle. Revenue was US$127.58 billion, compared to US$128.22 billion projected. In the annual comparison, revenue increased 25%, a strong growth that, even so, was not enough to meet estimates.
In accounting net profit, the number went from US$ 34.98 billion (US$ 2.87 per share) a year earlier to US$ 26.17 billion (US$ 2.12 per share) in the quarter. Revenue grew, but the gain attributed to each share shrank.
Another important point was free cash flow, which fell in the third quarter, according to Times Brasil. This indicator shows how much money is left after investments, and is therefore usually watched closely when a company increases its expenses.
The company maintained its investment forecast for 2026 and projected a significant increase for 2027, reports Times Brasil. The exact values of this increase are not included in the material collected, which leaves the market without the precise size of the additional expense.
What is at stake is the patience of those who buy the stock for growth. When spending increases while profit and cash flow decline, the investor begins to demand a concrete return on contributions.
What changes for the investor
For those who follow the Nasdaq, the episode shows how a lower-than-expected balance sheet can weigh more on the price than revenue growth. The drop of more than 10% highlights the sensitivity of the stock to results, without indicating a future trend. In the next balance sheets, it is worth observing whether cash flow recovers and whether the investment planned for 2027 is accompanied by a return. This article does not recommend buying or selling assets and does not project quotations.
Automatically translated from Portuguese.
