Key Takeaways
Google Search and other revenue rose 12% to $63.35 billion in the quarter ended 30 September 2026
Google advertising revenue reached $82.0 billion, up 10.6%, with YouTube ads up 9.2% and Google Network up 1.4%
Search and other supplied $6.78 billion of the $7.83 billion rise in Google advertising revenue, a share of 86.6%
Google's chief business officer named currency as the biggest factor in Search's slowdown versus Q2 and cited lower AI Mode monetization
India is among 10 markets where Google is scaling ads in AI Mode, and Google's AI Mode performance data comes from the US
Google earnings for the July to September quarter put Search and other revenue at $63.35 billion, up 12%, according to Alphabet's results release. The same release says Search query growth reached its highest rate in 5 years.
On 28 October, Google also said it is scaling ads in AI Mode in India and 9 other markets. That follows Google's February plan for ads in AI Mode.
What did Google earnings show about ad revenue?
Google advertising revenue was $82.0 billion in Q3 2026, up 10.6% from $74.2 billion a year earlier. Google Search and others grew 12%, YouTube ads grew 9.2%, and Google Network grew 1.4%. Alphabet's total revenue reached $127.6 billion, up 25%.
Search supplied 86.6% of Google's ad revenue growth
| Line | Q3 2025 | Q3 2026 | Growth | Dollar increase |
|---|---|---|---|---|
| Google Search and other | $56.57B | $63.35B | 12.0% | $6.78B |
| YouTube ads | $10.26B | $11.21B | 9.2% | $0.95B |
| Google Network | $7.35B | $7.46B | 1.4% | $0.10B |
| Google advertising total | $74.18B | $82.01B | 10.6% | $7.83B |
Note: Growth, dollar increase, and share are WrittenlyHub calculations from the figures in Alphabet's release.
Search and other growth has slowed for 2 straight quarters. Search Engine Journal tracked it at 19% in Q1, 17% in Q2, and 12% in Q3.
5 reasons Google gave for slower Search growth
- Currency: Philipp Schindler named currency movements as the biggest factor in the slowdown versus Q2.
- EU de minimis exemption: Some Asia-Pacific retail advertisers felt the EU ending its exemption for low-value imports.
- Media and entertainment: Spend normalized after a Q2 lifted by the FIFA World Cup.
- AI Mode monetization: Schindler said strong AI Mode query growth weighed on revenue through lower monetization.
- Tougher comparison: CFO Anat Ashkenazi said Search growth kept accelerating through the second half of 2025.
Schindler addressed AI Mode directly on the earnings call:
"Lower monetization we were seeing in AI Mode"
Search Engine Journal noted that Schindler did not say what AI Mode monetization is lower than, or how much revenue it cost.
What changes for you in India
Google's post lists India among 10 markets where ads in AI Mode are scaling now. Brazil, Mexico and the United Kingdom follow in Q4 2026.
The other 9 are Australia, Canada, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore.
Ads in AI Overviews already run in India. Google's Ads Help page limits them to English Text and Shopping ads.
The same page excludes sensitive verticals such as finance and healthcare.
For AI Mode, Google's help page on ads in AI-powered experiences makes existing Search, Shopping, and Performance Max campaigns eligible by default.
You can't opt out of AI Mode separately from Search. The page lists India as eligible and limits Pakistan to text ads.
Google makes 2 performance claims in its post. Click-through rates are similar between sponsored and organic product listings in AI Mode, and AI Mode queries run about 3 times longer than traditional searches.
Both claims rest on US data. The click-through comparison covers 20 August to 3 September 2026, a 15-day window.
The query-length figure comes from a May 2026 US report.
For the usage numbers, see our report on AI Mode's growth past 1 billion monthly users.
Capex more than doubled while Cloud grew 103%
Alphabet's purchases of property and equipment were $51.4 billion, against $24.0 billion a year earlier. Free cash flow was negative $9.1 billion.
Google Cloud revenue grew 103% to $30.7 billion. Diluted EPS was $2.12 against $2.87.
An $8.7 billion net loss on equity securities cut that EPS by $0.55.
What isn't confirmed yet
- Google has not said what AI Mode monetization is lower than, or how much revenue it cost.
- Google has not published India results for ads in AI Mode, and its click-through claim covers US data.
- Google's post names the US only for multi-turn ads and gives no date for other markets.
- Alphabet's release does not break out AI Mode revenue.
3 checks for your Google Ads account this week
Check your targeting. For ads in AI Overviews, Google's help page requires AI-powered targeting such as broad match, AI Max, Shopping, or Performance Max. See which of your campaigns use them.
Read your search terms report. Google's help page says queries that trigger ads in AI Overviews and AI Mode appear in aggregate, so expect no separate AI Mode line.
Plan for English. Google's help page lists English as the only language for these ads, so review your Hindi and regional-language campaigns separately.
Disclaimer: This content is generated with the help of AI and involves human oversight. Please verify the sources and claims at your end.
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