Google Search revenue rises 12% but misses Q3 estimates

Google Search revenue rose 12% year over year in the third quarter of 2026 but fell short of estimates, Business Insider’s Hugh Langley reported. The Financial Times put Search revenue at $63.4 billion, versus an estimated $64.9 billion. At the same time, Google said its year-over-year query growth rate was its highest in five years, according to Business Insider.

Google chief business officer Philipp Schindler identified lower monetization of AI Mode queries as one factor on the earnings call. “It's worth noting that the strong growth in AI Mode queries had an impact because of the lower monetization we were seeing in AI Mode,” he said, according to Business Insider. The outlet reported that he also cited foreign-exchange headwinds.

Schindler said Google’s ad experiments showed “promising results” and that it was scaling ads in AI Mode and AI Overviews to more queries, Business Insider reported. That is Google’s account of its experiments, not a reported measure of improved AI Mode monetization.

Alphabet’s overall revenue was $127.6 billion, up 25% year over year but slightly below the average FactSet analyst forecast, . The outlet reported $51.3 billion in quarterly capital expenditure and free cash flow of minus $9.1 billion, compared with minus $5.9 billion the previous quarter. Its account put Alphabet shares down more than 8% in after-hours trading; a decline of around 10% after hours on Oct. 28.