2 minBusiness
YouTube ad revenue rises 9% to $11.2 billion as Alphabet misses estimates
YouTube's advertising revenue grew 9% to $11.2 billion in the third quarter of 2026, a slower pace than in recent quarters, while parent company Alphabet came in below analyst expectations.
YouTube's advertising business continued to grow in the third quarter of 2026, bringing in $11.2 billion in ad revenue, a 9% increase. The video platform still captured a steady share of digital ad spending, but its expansion was slower than in recent quarters and trailed the growth rate of parent company Alphabet as a whole.
The slower YouTube figure stood in contrast to a sharp rise in another part of the business. Google Cloud, the company's cloud computing division, saw its revenue double over the period, making it the strongest growth engine within Alphabet's results. The cloud unit has been a central focus for the company as it competes with other providers for enterprise customers and artificial intelligence workloads.
Alphabet, however, came in below the expectations of analysts tracking the company. The shortfall in earnings relative to estimates weighed on the company's overall quarterly performance, even as its revenue line held up better against forecasts. Investor reaction to the results centered on that gap between what the company reported and what the market had anticipated.
The quarter's figures underline a split in Alphabet's performance. Advertising, long the company's core source of income through Search and YouTube, is still growing, but at a more moderate pace, while cloud services are accelerating. Analysts and investors will be watching whether YouTube's ad momentum stabilizes in coming quarters and whether Google Cloud can sustain its expansion as the company works to meet higher expectations.
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