Introduction to Google’s Q3 Earnings
Google recently held its Q3 earnings call, where CEO Sundar Pichai discussed the impact of AI features on search usage. According to Pichai, AI features are expanding search usage rather than replacing it. This is an "expansionary moment for Search," with Google’s AI experiences highlighting the web and sending billions of clicks to sites every day.
What Did Google Report In Its Q3 Earnings?
Pichai reported that overall queries and commercial queries both grew year over year, with the growth rate increasing in Q3 compared to Q2. This growth was largely driven by AI Overviews and AI Mode.
AI Mode & AI Overviews
AI Mode saw "strong and consistent" week-over-week growth in the U.S., with queries doubling in the quarter. Google rolled out AI Mode globally across 40 languages, reaching over 75 million daily active users and shipping more than 100 improvements in Q3. AI Mode is already driving incremental total query growth for Search. AI Overviews also drive meaningful query growth, with the effect being even stronger in Q3, especially among younger users.
Revenue: By The Numbers
Alphabet posted $102.3 billion in revenue, its first $100B quarter. "Google Search & other" revenue reached $56.6 billion, up from $49.4 billion a year earlier. YouTube ads revenue reached $10.26 billion in Q3, with YouTube remaining the number one streaming platform in the U.S. for over two years. In the U.S., Shorts now earn more revenue per watch hour than traditional in-stream.
Why It Matters
Google is telling Wall Street that AI surfaces expand search rather than replace it. If this holds, the company has reason to put AI Mode and AI Overviews in front of more queries. The near-term implication for marketers is a distribution shift inside Google, not a pullback from search. However, Google didn’t share outbound click share from AI experiences or new reporting to track them, so teams will have to rely on their own analytics to judge impact.
Looking Ahead
Google plans to keep pushing AI-led search surfaces. The company is looking forward to the release of Gemini 3 later this year, which would give AI Mode and AI Overviews a stronger model foundation. Google described Chrome as "a browser powered by AI" with deeper integrations to Gemini and AI Mode, and more agentic capabilities coming soon. The company also raised 2025 capex guidance to $91–$93 billion to meet AI demand, supporting continued investment in search infrastructure and features.
Conclusion
In conclusion, Google’s Q3 earnings call showed that AI features are expanding search usage rather than replacing it. With the growth of AI Mode and AI Overviews, Google is poised to continue investing in AI-led search surfaces. As AI demand continues to grow, Google is well-positioned to meet this demand and continue to be a leader in the search industry. The company’s plans to release Gemini 3 and further integrate AI into Chrome will likely have a significant impact on the future of search.