Google Earnings: EPS of $2.12 Misses the $3.01 Estimate as Revenue of $127.5 Billion Also Comes In Light

Alphabet's earnings missed on both lines, and the stock paid for it after hours.

Alphabet reported earnings per share of $2.12, missing the $3.01 estimate by $0.89, while revenue of $127.58 billion also missed expectations.

$GOOGL fell more than 8% after the report.

Cloud Was Not the Problem

Revenue still grew about 25% year over year, and Google Cloud was the standout: cloud revenue jumped 103% to $30.71 billion on huge demand for AI infrastructure and AI solutions.

The damage came below the operating line. An $8.7 billion net loss on equity securities dragged net income down to $26.2 billion from $34.9 billion a year earlier, cutting diluted EPS by $0.55 on its own.

Operating income actually rose 30% to $40.58 billion, with an operating margin of 31.8%, and YouTube ad revenue came in at $11.2 billion.

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What It Means for the Options Market

An 8% after-hours drop in a name this size resets positioning across the whole mega-cap complex heading into the rest of earnings season.

Watch GOOGL for dip-buying versus continued put flow at the open, read-through to META and AMZN ahead of their prints, and cloud exposure through MSFT after its own beat the same evening.

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