On October 28, 2026, Google announced the launch of ads in follow-up queries in U.S. AI Mode. Alphabet reported $63.350 billion in Q3 2026 Google Search & other revenue, up 12% from a year earlier. Google’s announcement and Alphabet’s results lay out two parts of the news: an ad expansion and a quarter in which Search revenue rose.
Where Google said AI Mode ads were expanding
Google announced ads in follow-up queries in the United States. It also said it was scaling AI Mode ads in Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore. Brazil, Mexico and the United Kingdom were named in a separate plan for expansion in Q4 2026.
Search revenue rose between Q2 and Q3
Alphabet reported Google Search & other revenue of $60.846 billion in Q2 2026 and $63.350 billion in Q3. That is a calculated increase of $2.504 billion, or about 4.1%, from Q2 to Q3. Alphabet reported that Q3 revenue was up 12% year over year.
| Measure | Amount | Basis |
| Google Search & other, Q2 2026 | $60.846 billion | Reported quarterly revenue |
| Google Search & other, Q3 2026 | $63.350 billion | Reported quarterly revenue; up 12% year over year |
| Change from Q2 to Q3 | +$2.504 billion, about 4.1% | Calculated from the reported quarterly amounts |
Alphabet said Search query growth was at its highest rate in five years. At the Q3 earnings call, Google Chief Business Officer Philipp Schindler said strong growth in AI Mode queries affected Search growth because AI Mode monetized less. His explanation identifies a factor, but does not give a dollar amount for its effect.
AI Mode ad tests are separate from Search Shopping ads
Google says its ads are labeled “Sponsored.” In a May 20, 2026 announcement, it described Conversational Discovery ads and Highlighted Answers as formats being tested in AI Mode. Conversational Discovery ads tailor creative to a person’s question; Highlighted Answers allow relevant ads to appear in AI Mode recommendation lists. Google announced AI-powered Shopping ads separately as a Search format. Google’s announcement of the formats also said the AI Mode formats include a Gemini-generated independent explainer.
Google’s CTR comparison covers product lists in AI Mode
Google characterized click-through rates as similar for sponsored and organic product-list items in AI Mode. The comparison used Google’s internal U.S. data from August 20 through September 3, 2026. It applies to those product-list items, rather than to every ad and organic result in Search.
