Google’s Q2 Search revenue rose 17% year-over-year to $63.3 billion, missing expectations amid rising AI competition.
Alphabet’s Google Search and other revenue grew 17% year-over-year to $63.3 billion in the second quarter, decelerating from 19% growth in the prior quarter. The figure fell slightly short of market expectations as concerns over AI-driven search alternatives persist.
Search revenue had accelerated in recent quarters, rising from 10% in Q1 2025 to 19% in Q1 2026. The company’s 90% market share remains dominant, but users increasingly turn to AI chatbots for queries. Alphabet recently redesigned its search box to integrate an “AI Mode” button.
The results were overshadowed by a $99 billion paper gain on equity stakes and higher capital spending plans, diverting attention from core search performance.