Google admits AI Mode queries earn less than traditional search
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Google parent Alphabet reported nearly $128 billion in revenue and more than $26 billion in net income in the third quarter of 2026, Ars Technica reported. Although revenue rose 25 percent from a year earlier, earnings per share came in at $2.12, below the $3.02 projection, and the stock price fell nearly 12 percent after the results. Negative cash flow reached $9.06 billion, according to the site.
During the presentation, Chief Business Officer Philipp Schindler said each AI Mode query generates less revenue than a comparable web search because there are fewer ads and they cost less to serve. Search-volume growth also slowed to 12 percent for the quarter, from 17 percent in the second quarter and 19 percent in the first. Search revenue was flat, while Google Cloud beat expectations with more than $30 billion in revenue.
Why it matters · editorial interpretation
Philipp Schindler’s statement places AI Mode’s expansion against a monetization challenge: according to the executive, each query generates less revenue than a traditional search, while search-volume growth slowed. This helps put the market’s negative reaction to Alphabet’s results in context.
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