Alphabet, Google's parent, delivered third-quarter results that fell short of market expectations as search advertising growth slowed, the Wall Street Journal reported on Tuesday.

Alphabet shares fell more than 8 percent in after-hours trade.

Alphabet's third-quarter revenue rose 25 percent to $127.6 billion but came in slightly below analysts' estimates, the report said.

Cloud revenue was $30.7 billion, above expectations. Google Cloud revenue jumped 103 percent from a year earlier, while services revenue was $96.3 billion, below an expected $98.5 billion.

Search advertising revenue growth was 12 percent. That continues a downward trend from 19 percent in the first quarter and 17 percent in the second quarter.

Google said growth in the number of search queries entered was the highest in the past 5 years, but did not disclose specific figures.

Free cash flow widened to a $9.1 billion deficit as AI infrastructure spending rose. That was larger than market expectations. Third-quarter capital spending rose to $51.4 billion from $44.9 billion in the second quarter. Google posted a free cash flow deficit for the first time since going public in the second quarter.

At the time, Google raised its 2026 capital expenditure plan to $195.0 billion to $205.0 billion. In June, it also announced a plan to sell $85.0 billion of stock to raise funds for AI infrastructure.

Google released a new version of its AI model, called Gemini 4 Argon, in September and more recently announced Gemini 4 Carbon. Google is also stepping up external sales of its in-house AI chip, TPU.

Anthropic's securities registration statement (S-1) disclosed on Oct. 26 also mentioned the relationship between Google and Anthropic.

Anthropic agreed to pay Google about $114.5 billion in computing costs from April 2026 through July 2033. Google holds more than a 5 percent stake in Anthropic. Anthropic said it would invest an additional $20.0 billion if it meets its revenue targets.