Google used its Q3 earnings name to argue that AI options are increasing search utilization moderately than cannibalizing it.
CEO Sundar Pichai described an “expansionary second for Search,” including that Google’s AI experiences “spotlight the online” and ship “billions of clicks to websites each day.”
Pichai stated total queries and business queries each grew yr over yr, and that the expansion charge elevated in Q3 versus Q2, largely pushed by AI Overviews and AI Mode.
What Did Google Report In Its Q3 Earnings?
AI Mode & AI Overviews
Pichai reported “robust and constant” week-over-week progress for AI Mode within the U.S., with queries doubling within the quarter.
He stated Google rolled AI Mode out globally throughout 40 languages, reached over 75 million each day energetic customers, and shipped greater than 100 enhancements in Q3.
He additionally stated AI Mode is already driving “incremental whole question progress for Search.”
Pichai reiterated that AI Overviews “drive significant question progress,” noting the impact was “even stronger” in Q3 and extra pronounced amongst youthful customers.
Income: By The Numbers
Alphabet posted $102.3 billion in income, its first $100B quarter. “Google Search & different” income reached $56.6 billion, up from $49.4 billion a yr earlier.
YouTube adverts income reached $10.26 billion in Q3. Pichai stated YouTube “has remained primary in streaming watch time within the U.S. for greater than two years, based on Nielsen.”
Pichai added that within the U.S. “Shorts now earn extra income per watch hour than conventional in-stream.”
The quarter additionally included a $3.5 billion European Fee tremendous that Alphabet notes when discussing margins. Excluding that cost, working margin was 33.9%.
Why It Issues
Google is telling Wall Avenue that AI surfaces develop search moderately than change it. If that holds, the corporate has cause to place AI Mode and AI Overviews in entrance of extra queries.
The near-term implication for entrepreneurs is a distribution shift inside Google, not a pullback from search.
What’s lacking is as essential as what was stated. Google didn’t share outbound click on share from AI experiences or new reporting to trace them. Count on adoption to develop whereas measurement lags. Groups will likely be counting on their very own analytics to evaluate impression.
The income backdrop helps continued funding. “Search & different” rose yr over yr and Google highlighted progress in business queries. Paid budgets are more likely to stay with Google as AI-led classes take up a bigger share of utilization.
Wanting Forward
Google plans to maintain pushing AI-led search surfaces. Pichai stated the corporate is “wanting ahead to the discharge of Gemini 3 later this yr,” which might give AI Mode and AI Overviews a stronger mannequin basis if the timing holds.
Google described Chrome as “a browser powered by AI” with deeper integrations to Gemini and AI Mode and “extra agentic capabilities coming quickly.”
The corporate additionally raised 2025 capex steerage to $91–$93 billion to satisfy AI demand, which helps continued funding in search infrastructure and options.
Featured Picture: Picture Company/Shutterstock
