Alphabet Earnings: What AI Means for Google's Ad Business

Breaking down Alphabet's earnings and what AI integration means for the core ad business.

Chris Versace·FEB 5, 2026, 8:00 PM UTC

Alphabet's quarterly earnings revealed the company's AI investments are beginning to pay off in measurable ways across its advertising platform. AI-powered ad products saw a 35% increase in advertiser adoption, translating to higher click-through rates and revenue per search.

However, the company's cloud division growth decelerated slightly, missing analyst expectations and raising questions about competitive positioning against AWS and Azure.

#Earnings Analysis