Google search ad growth misses forecasts as AI mode pays less
Original title: Google's AI search problem finally shows up in the earnings report, some investors believe
Search and other ads rose 12% to $63.4 billion, short of a 15% expectation, while Cloud revenue doubled.
Alphabet’s third-quarter search and other advertising rose 12% to $63.4 billion, below the 15% analysts expected. Executive Philipp Schindler said strong growth in AI mode queries had an impact because of lower monetization. Google Services revenue rose 11% to $96.3 billion, and Google Cloud grew 103% to $30.7 billion as quarterly capital spending reached $51.4 billion. Sundar Pichai said the Gemini app has one billion users and that the full Carbon model will first go to selected cybersecurity experts and the U.S. government.
Unconfirmed: The article presents the share drop and the link to AI search as what some investors believe, not as established causation.
- YouTube advertising grew 9% to $11.2 billion.
- Operating income was $39.2 billion, with a 40.7% margin.
- Google’s model APIs process nearly 32 billion tokens per minute.
- Full-year 2026 capital spending is forecast at $195 billion to $205 billion.
- Google plans to expand its chatbot ad program in the U.S. and abroad.
- Vendors
- Products
- Google SearchYouTubeGoogle Cloud
- Countries
- United States
From the original article
3 min read at the-decoder.com
Google's stock dropped as much as ten percent after its quarterly earnings. Cloud revenue more than doubled to $30. 7 billion, but search revenue grew just 12 percent, slower than expected.
By Matthias Bastian · the-decoder.com
A short excerpt; the article and its images belong to the publisher. Summary, key facts and assessment above are AI-written from the article and can be wrong.