Key facts
- Google's AI search queries earn less revenue than traditional web searches.
- Search revenue was flat in Q3.
- Search volume growth slowed to 12% in Q3, down from previous quarters.
Alphabet parent Alphabet reported its Q3 financial results on Wednesday afternoon, showing a healthy rise in revenue for the months of July to September. But the company’s stock price has taken a beating, marking one of the largest post-earnings drops in its history. The company took in almost $128 billion in Q3 2026, earning more than $26 billion in net income. While revenue was up 25 percent year-over-year, analysts expected more. Google reported earnings per share of $2.12, but the consensus projection ahead of Wednesday was $3.02. Google’s Cloud products actually beat expectations, crossing $30 billion in revenue. During the earnings call, Chief Business Officer Philipp Schindler discussed the company’s search volume. In the last quarter, Google saw search grow by 12 percent versus last year. Search revenue was also flat in Q3. According to Schindler, each AI Mode query earns less revenue compared to a similar web search—there are fewer ads, and they cost less to run.