Alphabet Q3: Google Cloud Doubles, AI Mode Ads Go Global

Oct 29, 2026
Google is expanding ads in AI Mode to international markets as Alphabet reports slower Search advertising growth and a sharp increase in Google Cloud revenue.

Alphabet reported third quarter revenue of $127.6 billion, up 25% year over year, with Google Cloud revenue up 103% to $30.7 billion, according to Constellation Research. Net income was $26.17 billion, or $2.12 a share, and free cash flow was negative for a second straight quarter at minus $9.07 billion.

On the earnings call, Google said it is expanding ads in AI Mode to international markets for the first time and adding multi-turn ads in AI Mode in the US, TechCrunch reports via Yahoo Finance.

Google Search revenue grew 12% year over year, compared with 17% in the second quarter and 19% in the first quarter. Alphabet shares fell 8% after the results.

Google said click through rates for sponsored product listings in AI Mode are comparable to those for organic listings. The company is also showing ads within AI Overviews to more users and for more queries.

The expansion follows Google's introduction of ads in AI Mode in the US in May 2025.

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