Alphabet Q3 Net Income Falls to $26.17 Billion Despite 25% Revenue Growth, Cloud Revenue Doubles

Alphabet Inc. (GOOG, GOOGL) reported a drop in third-quarter profit on Wednesday as higher expenses weighed on earnings, even as revenue rose 25% to $127.58 billion from $102.35 billion a year earlier. Net income fell to $26.17 billion, or $2.12 per share, from $34.98 billion, or $2.87 per share. Other income and expense swung to a net expense of $8.22 billion from net income of $12.76 billion, mainly on losses on equity securities. Operating margin improved to 31.8% from 30.5%. Google Cloud revenue more than doubled to $30.71 billion from $15.16 billion, while Google Services revenue grew 11% to $96.30 billion. The board declared a quarterly cash dividend of $0.22 per share, payable December 14 to shareholders of record December 7.