TLDR
- Alphabet shares fell more than 10% in premarket trading after a third-quarter miss.
- Dow futures rose 0.3%, while S&P 500 futures fell and Nasdaq futures dropped 1.3%.
- Microsoft gained after Azure cloud growth hit 48% and revenue beat forecasts.
- Samsung’s chip profit missed estimates, and Nvidia, AMD and Micron fell.
- Fed Chair Kevin Warsh doubted that higher rates would spare AI spending.
US stock futures split on Thursday as Alphabet fell sharply after its third-quarter earnings. Dow futures rose while Nasdaq futures dropped.
Dow Jones futures gained 0.3%. S&P 500 futures fell between 0.4% and 0.5%, and Nasdaq-100 futures slid 1.3%.
Alphabet earnings miss expectations
Alphabet shares dropped more than 10% in premarket trading. The company missed third-quarter expectations, mainly because of weak revenue from its services unit.
Google’s ad revenue grew at its slowest pace in five quarters. Cloud revenue rose 103%.
ALPHABET $GOOGL Q3’26 EARNINGS HIGHLIGHTS
🔹 EPS: $2.12
🔹 Revenue: $127.6B (Est. $128.22B) 🔴; +25% YoY
🔹 Google Cloud Revenue: $30.7B (Est. $29.15B) 🟢
🔹 Search & Other: $63.4B (Est. $64.99B) 🔴
🔹 YouTube Ads: $11.2B (Est. $11.4B) 🔴
🔹 CapEx: $51.4B (Est. $55.2B) 🟢
🔹… pic.twitter.com/adgjWRXUKc— Wall St Engine (@wallstengine) October 28, 2026
Management said users like its AI Mode search option. However, those searches earn money at a slower rate than traditional ones.
Capital spending rose $6.5 billion from the prior quarter to $51.4 billion. Free cash flow fell deeper into negative territory.
Microsoft rose in premarket trading after it beat expectations. Revenue grew 19% to $92.28 billion.
Azure cloud growth reached 48%. Adjusted profit was $4.89 a share, above Wall Street forecasts.
Microsoft also plans to offer buyouts this week. The Wall Street Journal reported that about 60,000 of its 223,000 employees may be eligible.
Chip stocks and Samsung fall
Selling spread to chip stocks. Nvidia, AMD and Micron fell after hours, and the iShares Semiconductor ETF also slid.
South Korea’s Kospi index declined. Samsung Electronics shares fell more than 4% after its chip division profit missed estimates.
Samsung’s group operating profit was 100 trillion won, about $74.52 billion. It was a fourth straight record quarter, but the company gave no new details on shareholder returns.
Executives said next year’s memory chip supply is already fully booked. Samsung expects tight supply to last for several years.
Fed Chair Kevin Warsh spoke after the Fed held rates steady on Wednesday. He said he is skeptical that higher rates would not affect AI spending, adding, “Interest rates get in the cracks.”
Markets expect the Fed to raise rates in December, after a hike in September. Investors also await core PCE inflation data, which is expected to rise 3.1%.
Amazon reports after the bell on Thursday, along with Eli Lilly, Mastercard, Intel, Caterpillar and Anheuser-Busch InBev. The European Central Bank will announce its rate decision later today.
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