Alphabet’s share price was reported to have fallen approximately 12% the day after it announced its third-quarter results for 2026, with low monetisation of AI Mode cited as affecting performance. It also announced plans to roll out AI Mode advertising internationally.
Alphabet announced its third-quarter results for 2026 on 28 October U.S. time, and its share price was reported to have fallen approximately 12% the following day. Its market capitalisation is said to have declined by more than $500 billion in a single day, described as the second-largest fall after Nvidia.
At the earnings briefing, Google Chief Business Officer Philipp Schindler acknowledged that low monetisation of AI Mode limited its contribution to results. AI Mode is a new search mode that displays answers generated by Gemini; although queries are increasing, they were explained to generate less advertising revenue than conventional search.
To compensate, the company announced an international rollout of advertising in AI Mode, expanding it to 10 countries: Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines and Singapore. Brazil, Mexico and the United Kingdom are scheduled to be added in the fourth quarter of 2026.