According to Search Engine Journal, executives discussed how AI search and traditional search are merging into one unified product during the Google earnings call. Alphabet reported revenues up 25 percent year-over-year while executives emphasized rapid improvements driven by Recursive Self-Improvement and an increasing focus on agentic search features.
Key takeaways
- Search Engine Journal reports that Alphabet revenues increased by 25 percent year-over-year.
- Google executives stated that traditional search, AI Overviews, and AI Mode are becoming a single unified product.
- The Gemini app reached one billion users, matching the milestone reported by ChatGPT in June of 2026.
- Google introduced the Connected Apps Platform to let users interact with website functionality directly inside search flows.
How is AI search changing during the Google earnings call?
Search Engine Journal reports that Google executives spent significant time detailing the early stages of agentic search and AI Mode. Sundar Pichai noted that agents represent a new frontier bringing fresh use cases to search experiences. Alphabet stock dropped following the call because ad revenue growth fell slightly short of Wall Street expectations and AI Mode currently displays fewer ads.
Philipp Schindler explained that the company prioritizes user experience before scaling ad formats. Search advertising grew 12 percent year-over-year despite analyst predictions of 15 percent. Meanwhile, cloud revenue surged by 103 percent year-over-year. Google also noted massive demand for its TPU systems, mentioning the phrase 35 times during the call to highlight specialized hardware and software offerings.
What to know about the Connected Apps Platform
Google launched the Connected Apps Platform on the day of the earnings call to let people use website functionality directly through search. Users can call apps like Peloton to bring external experiences into their agentic flow within Gemini. Sundar Pichai previously remarked that search will evolve into an agent manager where people use tools to get tasks accomplished rather than simply finding informational websites.
Why it matters
Website owners and digital marketers face shifting paradigms as traditional methods of making money from search transform. Google prioritizes perfecting user experience in AI Mode before expanding monetization, though ads in AI Mode recently expanded to countries like Australia and Canada. Businesses must adapt to a future where agents and connected apps handle tasks directly inside the search interface instead of driving standard web traffic.
Frequently asked questions
Search Engine Journal reported that Google is merging traditional search, AI Overviews, and AI Mode into a single unified product while emphasizing the growth of agentic search.
Alphabet revenues grew by 25 percent year-over-year, and cloud revenue saw a massive increase of 103 percent.
The Connected Apps Platform is a new offering announced by Google that allows users to access website functionality and apps like Peloton directly from within search and Gemini flows.
According to the earnings call, the Gemini app reached one billion users, making it the fastest-growing product in Google history.
Alphabet stock plummeted because search advertising revenue grew 12 percent year-over-year, which fell short of Wall Street expectations of 15 percent, alongside concerns that AI Mode currently shows fewer ads.
Based on reporting by Search Engine Journal. Read the original article
