# Alphabet sinks 8% after hours on EPS miss; Microsoft gains 4% on Azure beat

Quick Take · News · Published October 28, 2026 · By [Anthony Asuaje](https://walkeranthony.com/about/), Walker Strategies
Canonical URL: https://walkeranthony.com/news/alphabet-sinks-8-after-hours-on-eps-miss-microsoft-gains-4-on-azure-beat/

8% after-hours drop for Alphabet on a $0.90 EPS miss as AI capex erases cash flow; Microsoft rises 4% on 48% Azure growth.

Alphabet EPS $2.12 vs $3.02 expected; shares -8% after hours, beyond the ~6% options priced. Microsoft beat ($4.89 EPS, $92.3B revenue) on Azure +48%; shares +4%.
Market read: AI spending is rewarded only when cash flow holds; Alphabet posted negative free cash flow of $9.1B.
Watch: Nasdaq 100 open and Amazon's report Thursday.

**Why it matters:** Alphabet's drop exceeded the ~6% move options priced, showing investors now punish AI capex that burns free cash flow while rewarding growth with discipline. Expect pressure on Nasdaq 100 and big-tech ETFs at Thursday's open.

Source: [Investing.com](https://www.investing.com/news/stock-market-news/afterhours-movers-googl-msft-now-klac-cmg-cvna-tdoc-432SI-4980783)

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Educational and informational content only. I am not a licensed financial advisor and nothing here is investment advice. Do your own research before making any decision.