Google Admits AI Search Earns Less Per Query Than Traditional Search
Google executives admitted on an October 28, 2026 earnings call that its AI Mode search generates less revenue per query than traditional search, slowing overall Search growth and pressuring Alphabet's core business. Search revenue was nearly flat quarter-over-quarter at $63.35 billion, missing analyst expectations of $64.85 billion. Chief Business Officer Philipp Schindler cited lower monetization in AI Mode as a key factor, alongside currency effects and reduced advertiser spending in Asia-Pacific. Alphabet's stock fell 9.97% in after-hours trading to $292.50. The company reported negative free cash flow of $9.065 billion due to heavy capital spending, leaving little room for weakness in its most profitable segment.