Google admits AI search makes less money, but it's fixing that with more ads
Alphabet's Q3 2026 earnings show revenue up 25% year-over-year to nearly $128 billion, but net income fell by $9 billion and earnings per share missed analyst expectations, triggering a stock drop of nearly 12%. The company acknowledged that AI search generates less revenue than traditional organic search and plans to increase AI spending next year, while its Cloud division exceeded expectations with over $30 billion in revenue.