
Image credit: Abondance
Google’s Search & Other revenue surged to $60.4 billion in the first quarter of 2026, a 19 percent increase year-over-year, driven by artificial intelligence integrations and cost efficiencies.
The significant growth contributed to Alphabet‘s total revenue exceeding $109.9 billion, a 22 percent rise, though favorable currency exchange rates also played a role in the overall performance.
Chief Executive Sundar Pichai attributed the record-high search query volumes to new AI experiences, including AI Overviews and AI Mode, which were deployed during the quarter.
Google also reduced the cost of its AI responses by more than 30 percent since migrating its infrastructure to Gemini 3, according to company statements.
New features such as Google Personal Intelligence, expanded agentic experiences, and Search Live were introduced to users in the first quarter, enhancing the search platform’s capabilities.
Philipp Schindler, Google’s Senior Vice President and Chief Business Officer, highlighted the ongoing innovation in search, stating that AI was transforming how users interact with information.
Liz Reid, head of Google Search, emphasized the company’s commitment to evolving the search experience through advanced AI models.
Despite the revenue gains and increased query volumes, the earnings report did not specify whether websites were experiencing more or fewer clicks as a result of the AI-enhanced search results.
Analysts continue to monitor the long-term impact of AI Overviews and similar features on referral traffic to third-party content providers.
Source: Abondance
Written by
Joyce de Castro
Joyce is a core team member at Rabbit Rank and the lead author covering SEO news, algorithm updates, industry trends, and actionable ranking strategies.
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