YouTube Ad Revenue Jumps 9% in Third Quarter – TheWrap

YouTube Ad Revenue Jumps 9% in Third Quarter  TheWrap

Alphabet, the parent company of Google, reported its third quarter earnings for 2026 on Thursday. A third of the platform’s $11.2 billion in ad revenue came from living room viewership, even as Wall Street frets about Google’s broader revenue pressures Alphabet once again had a strong showing during its third quarter of 2026. But a 25% increase in revenue, growth in Search and increases at YouTube (especially as it relates to TV viewing — more on that later) weren’t enough to save the company from Wall Street’s increasing worries about AI. Shares retreated nearly 9% in the wake of the tech giant’s results. Overall, revenue for Alphabet came in just under $128 billion for the quarter, though the actual figure was a hair short of analyst expectations.

The quarter was driven by Google Search and other divisions, which brought in $63 billion, a roughly 12% year-over-year increase. The query growth rate for Google Search was the highest it has been in the last five years. However, these strong results for Search were also impacted by the rise of agentic AI, as Google’s own AI mode essentially ate into the ad revenue the company saw from Search. Philipp Schindler, the senior vice president and chief business officer for Google, emphasized that the company is still in early days when it comes