---
title: "Alphabet posted a cash outflow, and Nasdaq futures are down 1%"
url: "https://etf.net/news/alphabet-cash-outflow-nasdaq-futures-dip-2026-10-29"
published_at: "2026-10-29T11:23:17.086Z"
updated_at: "2026-10-29T11:23:17.086Z"
byline: "ETF.net Research"
---

# Alphabet posted a cash outflow, and Nasdaq futures are down 1%

Microsoft still produced cash and traded higher before the open. Growth and inflation data arrive at 8:30 a.m. ET.

By ETF.net Research. Published Oct 29, 2026.

Alphabet’s free cash flow was an outflow last quarter. Microsoft spent heavily too, but its cash flow stayed positive. [CNBC](https://www.cnbc.com/2026/10/28/stock-market-today-live-updates.html) reported Thursday at 7:04 a.m. ET that Alphabet shares were down **10%** and Microsoft shares were up 2.6%, with Nasdaq-100 futures down **1%**, S&P 500 futures down 0.2%, and Dow futures little changed.

That Nasdaq decline is the one that shows up in the Invesco QQQ Trust QQQ, which tracks the Nasdaq-100. The State Street SPDR S&P 500 ETF Trust SPY tracks the smaller move.

## Alphabet spent, and the cash went out

Alphabet said in its [Wednesday filing](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000080/googexhibit991q32026.htm) that revenue rose to $127.6 billion in the quarter ended Sept. 30, from $102.3 billion a year earlier. Diluted earnings were $2.12 a share, down from $2.87. An $8.7 billion loss on equity securities cut that earnings figure by $0.55.

The adjusted figure excludes that loss. [CNBC](https://www.cnbc.com/2026/10/28/alphabet-googl-earnings-q3-2026.html), using estimates from LSEG, a market-data firm, reported adjusted earnings of $2.67 a share against a $3.02 forecast, and said revenue missed a $128.22 billion forecast.

Search revenue rose 12% to $63.35 billion and missed a $64.96 billion estimate, CNBC reported.

Free cash flow was an outflow of **$9.07 billion**. CNBC said that fell much further than the $2.70 billion analysts expected. That $2.70 billion was an expected outflow.

Purchases of property and equipment more than doubled, to $51.4 billion from $24 billion. CNBC said analysts had expected $55.09 billion of capital spending. The cash miss came from operations, not from spending more than that forecast. Operating cash flow fell to $42.3 billion from $48.4 billion.

“We continue to expect our capex to increase significantly in 2027, and will provide further details on our Q4 call,” Chief Financial Officer Anat Ashkenazi told analysts.

## Microsoft’s cash flow stayed positive

[Microsoft said](https://www.microsoft.com/en-us/investor/earnings/fy-2027-q1/press-release-webcast) revenue rose 19% to $92.3 billion in the quarter ended Sept. 30. Earnings were $4.89 a share excluding gains on its OpenAI investment, and [CNBC](https://www.cnbc.com/2026/10/28/microsoft-msft-q1-earnings-report-2027.html) said that beat an LSEG estimate of $4.73. Revenue beat an LSEG estimate of $90.69 billion.

Azure revenue rose 48% to $33.2 billion. Chief Financial Officer Amy Hood told analysts she expects 49% to 50% growth this quarter once currency moves are stripped out, above a 45.1% forecast, CNBC reported.

The company spent $39.4 billion on property and equipment. Free cash flow fell 27% to $18.63 billion, CNBC reported. It was still positive.

## The drop was not one stock

Reuters said Fortinet was down 25% before the open and ServiceNow was down 18.2%, after results that disappointed investors. It said the declines deepened worries that artificial intelligence is disrupting software.

## Inflation data is the next test

The Federal Reserve on Wednesday held its benchmark rate at 3.75% to 4% and said inflation remains elevated. More information, it said, will help it decide how to get inflation back to 2%. Two officials dissented in favor of a quarter-point increase. At 8:30 a.m. ET the Bureau of Economic Analysis releases its first estimate of third-quarter gross domestic product and the September personal income and outlays report.

The European Central Bank announces at 9:15 a.m. ET. A Bloomberg survey published this morning found economists expecting the deposit rate to stay at 2.5%.

Econoday, which compiles economist forecasts, expects growth of 3.1% at an annual rate, up from 2.2% in the second quarter. It looks for personal consumption expenditures inflation of 3.6% from a year earlier, up from 3.4%, and core PCE inflation of 3.1%, up from 3.0%. As we see it, a hotter core reading would argue for leaving rates where they are. That is the risk for Alphabet and the software stocks already down.

Source: etf.net, https://etf.net/news/alphabet-cash-outflow-nasdaq-futures-dip-2026-10-29. Please cite the page URL.