[Google Q3 Earnings Report: Cloud Business Surges 103% to Record High, But Net Profit Plunges 25%, Causing Stock to Fall Nearly 10% in After-Hours Trading] BlockBeats reports that on October 29th, Google's parent company, Alphabet, released its Q3 2026 earnings report early this morning Beijing time. The company's revenue for the quarter was $127.6 billion, a 25% year-over-year increase, marking the 13th consecutive quarter of double-digit growth, with an annualized revenue run rate reaching $500 billion. However, this revenue level slightly fell short of Wall Street expectations, while net profit declined significantly year-over-year, resulting in an overall earnings report that underperformed market expectations. In terms of business structure, Google Cloud was the biggest highlight, with revenue increasing by 103% year-over-year to $30.7 billion, a record high, primarily driven by demand for enterprise AI infrastructure, AI solutions, and TPU-related businesses. In contrast, Google Services revenue grew 11% to $96.3 billion, with search and other advertising revenue increasing by 12% year-over-year, and YouTube advertising revenue growing by approximately 9% to $11.2 billion. The company stated that search query volume saw its highest year-over-year growth in nearly five years, with AI-related features contributing to increased usage. Profitability pressures were more pronounced. Net income attributable to common shareholders for the quarter was $26.2 billion, a decrease of approximately 25% year-over-year, with earnings per share of $2.12. The profit decline was primarily due to losses on equity securities investments (approximately $8.7 billion in losses during the quarter), whereas this item had contributed significantly to profits in the same period last year. Operating profit increased by 30% year-over-year to $40.6 billion, with the operating profit margin improving to 31.8%, indicating continued growth in core business operations. However, overall net income was significantly dragged down by investment gains and losses. Meanwhile, the company's capital expenditures remained high, resulting in negative free cash flow for the quarter. The company maintained its full-year capital expenditure guidance at $195 billion to $205 billion, reflecting its continued investment in AI infrastructure. However, the combination of high spending and investment losses resulted in earnings and cash flow performance falling short of market expectations. Following the earnings release, Alphabet's stock price fell 9.84% in after-hours trading. While the market acknowledged the rapid growth of its cloud business and the continued strong expansion of overall revenue, it also expressed concerns about slightly weaker-than-expected revenue and profits, slower growth in the advertising business, and cash flow pressure from high capital expenditures.