Alphabet Reports Third-Quarter Results Today as AI Spending Takes Centre Stage

Alphabet Reports Third-Quarter Results Today as AI Spending Takes Centre Stage

Google parent Alphabet reports third-quarter results on Wednesday, October 28, with a conference call scheduled for 4:30 p.m. ET — and investors will be watching one question above all: can growth in cloud and advertising keep pace with the enormous cost of the AI buildout? Analysts expect revenue of about $127.91 billion for the quarter, up from $102.35 billion a year earlier.

The bar is high. Alphabet's second-quarter revenue reached $119.80 billion, up 24.2 percent from a year earlier, and in June the company disclosed an $84.75 billion equity capital raise for AI infrastructure. That spending spree has already made some analysts cautious: Citizens JMP recently cut its price target from $515 to $450 while keeping a market-outperform rating, a sign that spending discipline matters as much as growth right now.

For ordinary users, the results are a window into the AI race itself. Alphabet's cloud business powers much of the AI boom, its advertising engine funds it, and its Gemini models compete directly with rivals. A strong report would suggest the AI bet is paying for itself; a weak one would raise fresh questions about how long even the world's biggest tech companies can keep spending at this pace.

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