Google admits AI search makes less money, but it's fixing that with more ads

Google 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. It comes down to several troubling aspects of the new report, including an admission by the company that AI search isn’t earning as much as organic search, and despite that, Google expects to spend even more on AI next year.

The company took in almost $128 billion in Q3 2026, earning more than $26 billion in net income. These may sound like good numbers, but financial markets are not impressed. While revenue is up 25 percent versus last year, net income is almost $9 billion lower. As of this story’s publication, the stock price is down almost 12 percent, and it was down about 13 percent earlier in the day.

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. That’s about a billion more than analyst guesses.

Read full article

Comments

More in Technology

Windows 11 gets right-click menu improvements as PC revenue slides October 29, 2026 Pentagon IG refuses to investigate Starlink/Starshield slowdown in Ukraine October 29, 2026 Trump declares robot imports a national security threat October 29, 2026 Trump ignored intel on China’s Nvidia spy to protect company’s stock, report says October 29, 2026 Turning a solar power system into its own backup October 29, 2026 ஒன்பிளஸ் அறிமுகம் செய்த புது 5ஜி போன்.. 9000எம்ஏஎச் பேட்டரி.. 200எம்பி கேமரா.. எந்த மாடல்? என்ன விலை? October 29, 2026

See all 197 in Technology →

Latest News

Manhattan Will Celebrate Harry Styles Appreciation Day October 29, 2026 Sir Patrick Stewart: Actor who moved effortlessly between Star Trek and Shakespeare October 29, 2026 Windows 11 gets right-click menu improvements as PC revenue slides October 29, 2026 Pentagon IG refuses to investigate Starlink/Starshield slowdown in Ukraine October 29, 2026 இஸ்ரேல் தேர்தல்: யாருக்கும் பெரும்பான்மை இல்லை! கிங் மேக்கராகும் அரபு கட்சிகள்! நெதன்யாகுக்கு தலைவலி October 29, 2026 Trump declares robot imports a national security threat October 29, 2026