Google Search revenue growth slows to 17 percent in Q2 2026

Image credit: Search Engine Journal

Alphabet Inc.’s Google Search & Other revenue growth decelerated to 17 percent year-over-year in the second quarter of 2026, marking the first slowdown after a year of accelerating expansion.

The search segment generated $63.27 billion, a decrease from the 19 percent growth reported in the first quarter of 2026, according to the company’s latest earnings report.

Despite the easing growth in its primary advertising business, total Alphabet revenue increased 24 percent year-over-year to $119.8 billion. This represented the 12th consecutive quarter of double-digit growth for the tech giant.

Sundar Pichai, CEO of Alphabet and Google, highlighted the continued importance of artificial intelligence in the company’s strategy. Pichai noted that the Gemini app now serves 950 million monthly active users, an increase from more than 750 million in the fourth quarter of 2025.

Google’s AI models are currently processing 22 billion API tokens per minute, demonstrating significant AI infrastructure utilization, Pichai said.

Philipp Schindler, Google’s Chief Business Officer, attributed the Search revenue growth to strong performance across several key verticals. These included retail, finance, technology, media, and entertainment.

Schindler specifically mentioned AI Max, Google’s AI-driven targeting tool, as a significant factor. He stated that AI Max enabled advertisers to monetize searches that were previously difficult to convert into revenue.

The company emphasized that AI advancements continue to be a core driver for both user engagement and advertiser value across its platforms.

Source: Search Engine Journal