Google reported its earnings today, its Q3 2026 earnings report showed search ad revenues up by 10.5% at $82 billion and overall revenue was up 25% at $127.6 billion. As you know, I specifically like to dig in as best as I can on the search ad revenue side to see how Google Ads has performed.
Google's ad revenue was up again year over year, up 10.5%, and overall revenue is also up 25%. Google's search revenue grew 10.5% to $82 billion, up from about $74 billion a year ago. Sundar Pichai said, "We had a strong quarter and are now on a half-trillion dollar revenue run rate. Our deep full stack approach is driving momentum across the business, with Alphabet revenues growing 25% year-over year."
If you want to compare Q3 2026 to Q2 2026, you will see ad revenue was up 0.5%, overall revenue was up 6.5% and profit was down 0.5%.
Google's stock price is down 7% in after hours trading, immediately after the earnings report was posted.
Here is a chart plotting Google's overall revenue, then ad revenue and then profit over the past several quarters:
Here is the snippet from the earnings report:
Sundar Pichai, Google's CEO, said:
We had a strong quarter and are now on a half-trillion dollar revenue run rate. Our deep full stack approach is driving momentum across the business, with Alphabet revenues growing 25% year-over-year.Our AI investments are driving overall Search query growth, including commercial queries. In fact, our year-over-year query growth rate is the highest it’s been in the last five years.
Google Cloud revenues grew 103%, powered by huge demand for our AI infrastructure and AI solutions. We’re also seeing strong demand for our TPU systems across a wide range of customers.
Gemini 4 Argon and Carbon are now leading at the frontier. Overall, our first-party model APIs are now processing nearly 32 billion tokens per minute, more than four times what we processed a year ago.
On top of that, the Gemini app has reached one billion users—making it the fastest-growing product in Google’s history—and we surpassed 150 million YouTube Music and Premium subscribers globally, including trials.
We’re excited by the range of big opportunities ahead of us.
Google’s free cash flow fell again during the third quarter. The figure totaled $9.07 billion, falling far short of the $2.70 billion expected by analysts. Operating income totaled $40.58 billion, missing a $43.19 billion forecast from FactSet.
Alphabet’s search revenue totaled $63.35 billion, missing a $64.96 billion estimate from analysts.
Here are more charts.
Q3 is in the books! We’re now on a half-trillion annual revenue run rate, with Alphabet revenues growing at 25%.
- Our AI investments are driving overall Search query growth, including commercial queries - our YoY query growth rate is the highest it’s been in the last five years. - Google Cloud revenue grew 103%, powered by extraordinary demand for our AI infrastructure and AI solutions. Our 1P model APIs now process nearly 32B tokens/min (up 40% QoQ). - Strong momentum in model progress with Argon and Carbon leading the frontier, and Genie 4 our most advanced new world model yet.
Thanks to our partners and employees around the world. More to share on the call soon!
— Sundar Pichai (@sundarpichai) October 28, 2026
Forum discussion at X.
Update: Google's stock price is now down almost 10% (now over 11% down) in after hours trading:
11%+ https://t.co/M8kTZ2cm8P
— Barry Schwartz (@rustybrick) October 28, 2026
