Google said AI Mode queries are growing faster than ever, but Search revenue rose 12% year over year to $63.35 billion and was nearly flat from the prior quarter, below the $64.85 billion analysts expected. Chief Business Officer Philipp Schindler said AI Mode currently monetizes at a lower rate than traditional search, while foreign exchange was the largest drag on Search growth. Google is expanding ads in AI Mode to international markets, though many AI Mode queries are early-stage research that may lead to fewer direct sales. Alphabet reported GAAP EPS of $2.12 versus $3.01 expected, and free cash flow of negative $9.065 billion after $51.355 billion in capital spending. The article says the fourth-quarter report is the key test: if FX eases and AI Mode ads grow while Search growth stays at or below 12%, the positive outlook would likely break down.
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GOOGLartificial intelligenceearningsadvertising
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/28/2026 | 325.61 |
| Change that session | +1.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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