Waymo’s backers valued it at $126 billion. The Alphabet division that houses it brought in $372 million last quarter—and lost $2.05 billion

Alphabet lost $482 billion in market value Thursday, its worst day since going public in 2004. The robotaxi business it’s taking to London and Tokyo barely registers in the third-quarter results behind that drop: Other Bets—the division that houses Waymo—brought in $372 million, about 0.29% of Alphabet’s $127.6 billion in sales, and lost more than five times that.

Thursday’s sell-off was driven by Google’s core search business, analysts concluded. Waymo still has to expand overseas inside a company whose shareholders just punished it for how much it spends, and it is leaning more on outside investors and lenders to pay for that growth.

“We had a strong quarter and are now on a half-trillion dollar revenue run rate,” CEO of Google and Alphabet Sundar Pichai said in the report. “Our deep full stack approach is driving momentum across the business, with Alphabet revenues growing 25% year-over year. We’re excited by the range of big opportunities ahead of us.”

Alphabet’s Other Bets division—which includes Waymo and “a combination of multiple operating segments”—generated $372 million in revenue in Q3, an 8% increase from a year earlier.

“Other Bets is a combination of multiple operating segments that are not individually material,” the Alphabet report read. “Revenues from Other Bets are generated primarily from the sale of autonomous transportation services and internet services.”

The division also reported an operating loss of $2.05 billion, up from $1.43 billion in the same quarter last year.

Alphabet’s robotaxi bet

Waymo’s expansion is being supported by a combination of Alphabet’s backing and large outside investments. In February, the company announced a $16 billion funding round that valued it at $126 billion.

Waymo said the money would help it expand into more than 20 additional cities during 2026, including international markets such as London and Tokyo. The company had provided more than 400,000 rides per week across six major U.S. metropolitan areas at the time of the announcement, according to Waymo. Waymo currently operates in 15 cities in the U.S., with 15 more cities “up next” in the country.

“In 2025 alone, we more than tripled our annual volume to 15 million rides, surpassing 20 million lifetime rides to date,” the Waymo press release read. “We are no longer proving a concept; we are scaling a commercial reality.”

And the financing spree has continued. In October, Waymo announced that it had closed a $5 billion term loan, its first debt financing. PIMCO, Blackstone and Sixth Street participated as lead syndicated lenders, with Goldman Sachs serving as the sole lead bookrunner. The loan gives Waymo additional financial flexibility to expand its autonomous ride-hailing operations without relying exclusively on equity financing. 

“This capital will accelerate the continued expansion of our fully autonomous ride-hailing service across the United States and internationally,” the company’s press release read.

Still a small fish in a large pond

Alphabet reported $127.6 billion in consolidated revenue for Q3 2026, up 25% year over year. Google Services—which includes Search, advertising, subscriptions and YouTube—generated $96.3 billion while Google Cloud contributed $30.7 billion, more than doubling its revenue from a year earlier.

Alphabet itself reported $40.6 billion in consolidated operating income, a 30% increase from the prior year. Its operating margin was 31.8%. And the company’s spending commitments are growing. Alphabet spent $51.4 billion on capital expenditures in Q3 compared to $24 billion in Q3 last year. The majority went toward technical infrastructure supporting AI ambitions—which includes servers, networking equipment and data centers.

This story was originally featured on Fortune.com