Google admits AI search makes less money, but it's fixing that with more ads
- Who
- Alphabet
- What
- reported Q3 2026 financial results, including that AI search earns less than organic search
- Quote
Google parent Alphabet reported its Q3 financial results on Wednesday afternoon, showing a healthy rise in revenue for the months of July to September.
What happened
Alphabet reported almost $128 billion in Q3 2026 revenue, up 25 percent year over year, but net income fell almost $9 billion to more than $26 billion. Earnings per share of $2.12 missed the $3.02 consensus projection, and shares were down almost 12 percent at publication. Google acknowledged that AI search earns less than organic search while expecting to increase AI spending next year.
Read next
See the full storyAlphabet’s Q3 Revenue Rises 25% as Profit Falls and Google Says AI Search Earns LessThe story so far
Alphabet reported nearly $128 billion in third-quarter 2026 revenue, up 25 percent year over year, but net income fell by almost $9 billion to just over $26 billion. Earnings per share of $2.12 missed the $3.02 consensus forecast, and Alphabet shares were down almost 12 percent at the time of publication. Google acknowledged that AI search earns less than organic search. The company nevertheless expects to increase AI spending next year.
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