# Alphabet reports Waymo revenue of $372 million, loss of $2.05 billion

Digest AI · Business & Funding · published 2026-10-28T23:53:58Z

Canonical: https://digestai.news/story/alphabet-reports-waymo-revenue-of-372-million-loss-of-2-05-billion

## Summary

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.

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.

## 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.

## Why it matters

Waymo's high revenue but massive losses highlight the capital-intensive nature of autonomous vehicle development. Alphabet's negative free cash flow due to AI spending signals a shift in corporate strategy, impacting investor sentiment and the sustainability of aggressive expansion.

## Sources

1. [As Waymo expands overseas, it remains a niche cash-burning business](https://cnbc.com/2026/10/28/as-waymo-expands-overseas-it-remains-a-niche-cash-burning-business.html) (CNBC Technology, 2026-10-28)

## Cite

Digest AI, "Alphabet reports Waymo revenue of $372 million, loss of $2.05 billion", 28 October 2026, https://digestai.news/story/alphabet-reports-waymo-revenue-of-372-million-loss-of-2-05-billion

---

Written by Digest AI's editorial model from the linked sources; the sources are the record. Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse
JSON: https://digestai.news/story/alphabet-reports-waymo-revenue-of-372-million-loss-of-2-05-billion.json