The Alphabet division that homes Waymo introduced in $372 million final quarter—and misplaced $2.05 billion

Thursday’s sell-off was pushed by Google’s core search enterprise, analysts concluded. Waymo nonetheless has to broaden abroad inside an organization whose shareholders simply punished it for a way a lot it spends, and it’s leaning extra on exterior buyers and lenders to pay for that progress.

“We had a robust quarter and at the moment are on a half-trillion greenback income run charge,” CEO of Google and Alphabet Sundar Pichai mentioned within the report. “Our deep full stack method is driving momentum throughout the enterprise, with Alphabet revenues rising 25% year-over yr. We’re excited by the vary of huge alternatives forward of us.”

Alphabet’s Different Bets division—which includes Waymo and “a mix of a number of working segments”—generated $372 million in income in Q3, an 8% improve from a yr earlier.

“Different Bets is a mix of a number of working segments that aren’t individually materials,” the Alphabet report learn. “Revenues from Different Bets are generated primarily from the sale of autonomous transportation providers and web providers.”

The division additionally reported an working lack of $2.05 billion, up from $1.43 billion in the identical quarter final yr.

Alphabet’s robotaxi wager

Waymo’s enlargement is being supported by a mix of Alphabet’s backing and huge exterior investments. In February, the corporate announced a $16 billion funding spherical that valued it at $126 billion.

Waymo mentioned the cash would assist it broaden into greater than 20 further cities throughout 2026, together with worldwide markets resembling London and Tokyo. The corporate had offered greater than 400,000 rides per week throughout six main U.S. metropolitan areas on the time of the announcement, based on Waymo. Waymo currently operates in 15 cities within the U.S., with 15 extra cities “up subsequent” within the nation.

“In 2025 alone, we greater than tripled our annual quantity to fifteen million rides, surpassing 20 million lifetime rides thus far,” the Waymo press launch read. “We’re not proving an idea; we’re scaling a industrial actuality.”

And the financing spree has continued. In October, Waymo announced that it had closed a $5 billion time period mortgage, its first debt financing. PIMCO, Blackstone and Sixth Road participated as lead syndicated lenders, with Goldman Sachs serving as the only lead bookrunner. The mortgage offers Waymo further monetary flexibility to broaden its autonomous ride-hailing operations with out relying solely on fairness financing. 

“This capital will speed up the continued enlargement of our absolutely autonomous ride-hailing service throughout the USA and internationally,” the corporate’s press launch read.

Nonetheless a small fish in a big pond

Alphabet reported $127.6 billion in consolidated income for Q3 2026, up 25% yr over yr. Google Companies—which incorporates Search, promoting, subscriptions and YouTube—generated $96.3 billion whereas Google Cloud contributed $30.7 billion, greater than doubling its income from a yr earlier.

Alphabet itself reported $40.6 billion in consolidated working earnings, a 30% improve from the prior yr. Its working margin was 31.8%. And the corporate’s spending commitments are rising. Alphabet spent $51.4 billion on capital expenditures in Q3 in comparison with $24 billion in Q3 final yr. The bulk went towards technical infrastructure supporting AI ambitions—which incorporates servers, networking tools and information facilities.