Google admitted that AI search revenue trailed traditional search. Alphabet's stock tumbled by approximately 12% following the financial report.

Alphabet released its Q3 2026 financial report, reporting revenue of approximately $128 billion, a 25% year-over-year increase. Net profit exceeded $26 billion but was nearly $9 billion lower than the previous year, with earnings per share at $2.12, below the analyst consensus of $3.02. The stock price initially dropped by nearly 13%. The company acknowledged that AI search revenue underperformed compared to traditional organic search and noted that AI spending is expected to rise next year; Google Cloud revenue surpassed $30 billion, slightly above analyst expectations.