By Hugh Langley
Publication Date: 2026-10-28 22:27:00
Is AI starting to hurt Google’s core search business? That’s the big lingering question following the company’s third-quarter earnings.
Google came out of the gates on Wednesday boasting that its year-over-year query growth rate was the highest in the last five years. It also saw a 12% increase in search revenue compared to this time last year.
Yet, Q3 search revenue missed the market estimates. Google’s share price was down around 10% after hours.
In short, Google’s AI investments have apparently led to more searches than ever, yet it’s not making money at the same rate.
That’s a big red flag for investors who have long been concerned, since the start of the AI boom, that the technology could directly threaten Google’s search business.
When asked about this gap on Wednesday’s earnings call, Google’s chief business officer Philipp Schindler blamed a variety of factors, including foreign-exchange headwinds, which the company expects to further impact…
