Alphabet Q3 revenue rises 25% to $127.6 billion, missing expectations

[The Information] Alphabet's overall revenue grew 25% to $127.6 billion in the third quarter, a slower-than-expected pace that disappointed investors, according to The Information. Operating profit rose, but net profit fell nearly a quarter to $26.2 billion, well below analysts' estimates. Google Cloud revenue doubled from a year earlier to $30.7 billion in the quarter, powered by demand from AI customers, and the company said sales of its tensor processing unit AI chips meaningfully contributed to growth, according to The Information. Google CEO Sundar Pichai said Google expects the vast majority of TPU revenues to be realized in 2027, The Information reported. Google's services business, its largest, which includes core search advertising, grew less than 11% in the quarter, the slowest rate since the first quarter of last year. The company reported negative free cash flow of $9 billion, marking a second straight quarter of negative cash flow and a big increase from the prior quarter's negative $5.9 billion deficit.