Gemini hits 1 billion users as Alphabet’s quarterly results disappoint
The milestone marks a significant moment for Google’s AI push, but 25% annual revenue growth was not enough to meet Wall Street’s expectations, and shares fell 7% after hours.
Google’s Gemini app has reached 1 billion users, marking a major adoption milestone for Alphabet’s artificial intelligence push. But the achievement did little to reassure investors on Wednesday, as the company’s shares fell 7% after its third-quarter revenue and search sales came in below analysts’ expectations.
Alphabet reported revenue of $127.58 billion for the quarter, a 25% increase from a year earlier. The result nevertheless fell short of the $128.22 billion forecast by analysts surveyed by LSEG.
The gap was also apparent in Google’s search business, which generated $63.35 billion in revenue, compared with analysts’ expectations of $64.96 billion. Search remains one of Alphabet’s central businesses, making the shortfall a key feature of the quarterly results.
Gemini offered a contrasting signal. Alphabet said the app had reached 1 billion users, making it the fastest-growing product in the company’s history. The milestone highlights the scale of adoption the company says it has achieved, even as its latest financial results failed to meet expectations.
Alphabet also reported free cash flow of $9.07 billion. Earnings per share came in at $2.12.
