Alphabet reports Waymo revenue of $372 million, loss of $2.05 billion
Alphabet disclosed in its third-quarter earnings report that its Other Bets segment, which includes Waymo and Isomorphic, generated $372 million in revenue. This figure represents a year-over-year increase of 8% but accounts for only 0.3% of the company's total sales. The segment’s operating loss widened significantly to $2.05 billion, up from $1.43 billion in the same period last year.
Key points
- Alphabet's Other Bets segment, including Waymo, generated $372 million in revenue, up 8% year-over-year.
- Operating loss for the segment widened to $2.05 billion from $1.43 billion in the prior year.
- Waymo operates in 15 U.S. cities and plans to launch in Germany in 2027.
CEO Sundar Pichai highlighted Waymo’s expansion during the earnings call, noting that the robotaxi service now operates in 15 major U.S. cities, including recent additions in San Antonio, San Diego, and Tampa. The company plans to expand into Canada, Germany, Singapore, and Spain, with Germany set to be its first European market in 2027. Waymo has also begun offering driverless rides at the Las Vegas airport.
Despite Waymo’s growth, Alphabet faces financial pressure from heavy AI infrastructure spending. The company reported negative free cash flow of over $9 billion for the quarter and maintained a full-year capital expenditure forecast between $195 billion and $205 billion. These factors contributed to an earnings and revenue miss, causing Alphabet’s stock to drop nearly 10% in extended trading. Meanwhile, Waymo recently secured a $5 billion term loan and raised $16 billion in a funding round led by Alphabet.
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As Waymo expands overseas, it remains a niche cash-burning business
CNBC Technology · 28 October 2026
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