Alphabet shares slumped more than 7% after the search giant reported a drop in free cash flow during the third quarter.

Here's how the company did, compared with estimates from analysts polled by LSEG:

• Earnings per share: $2.12. It is not immediately clear if the reported earnings are comparable to the LSEG analyst estimate of $3.02
• Revenue: $127.58 billion vs. $128.22 billion

Revenue grew 25% from a year ago, which marked the fastest rate of growth for any period since 2021.

Net income fell to $26.17 billion, or $2.12 per share, down from $34.98 billion, or $2.87 per share.

Google's free cash flow fell again during the third-quarter to $9.07 billion. That fell far further than the $2.70 billion expected by analysts.

As questions mount over heightened spending on the artificial intelligence buildout, Google capital expenditures totaled $51.36 billion, compared to $55.09 billion expected by analysts.

Operating income totaled $40.58 billion, missing a $43.19 billion forecast from FactSet.

Alphabet's search revenue totaled $63.35 billion, falling short of a $64.96 billion estimate from analysts.

Alphabet saw a $99.03 billion windfall in revenue from it's equity holdings in the second quarter, fueled by stakes in SpaceX and Anthropic. The category weighed on results in the third quarter, producing a $8.66 billion loss.

As Google continues to open its wallet to fuel expansion the AI expansion. That's powered strong revenue growth in its cloud division, home to its AI offerings.

Cloud revenue reached $30.7 billion, surpassing the $28.7 billion, or 90% growth expected by analysts. The company continues taking market share from larger rivals Amazon Web Services and Microsoft Azure.

The company's aggressive push on its AI models also showed signs of a payoff. Google said its Gemini app reached 1 billion users, making it the fastest-growing product in its history.

This is breaking news. Please check back for updates.

WATCH: Wall Street expects cloud growth to top 90% as search slows