Google Ads Revenue Up 13%, Bing Ads Revenue Closes in at 16%

Both Google and Microsoft announced their latest earnings reports today, covering Alphabet’s third-quarter 2025 results and Microsoft’s first-quarter 2026 figures. Google’s ad revenues increased by 13%, while Microsoft’s ad revenue rose by 16%. Overall, Google’s revenue hit $102.3 billion, marking the largest quarter in company history with a 16% increase. Microsoft’s total revenue reached $77.7 billion, up 18%. While my primary focus is on ad revenues, both giants demonstrated strong financial performance.

GOOG Earnings

Google reported its Q2 2025 earnings today, with ad revenues up again by 13% year-over-year, and total revenue increasing by 16%. Comparing Q2 2025 to Q1 2025, ad revenue grew by 4%, overall revenue by 6.2%, with profit remaining steady. Google CEO Sundar Pichai highlighted a “terrific quarter” driven by double-digit growth across major business segments, noting that this was their first-ever $100 billion quarter.

A chart illustrating Google’s revenues over recent quarters shows overall revenue, ad revenue, and profit trends, with visual data supporting the company’s growth trajectory.

The earnings report reveals key figures such as:

• Overall revenue of $102.35 billion, surpassing the expected $99.89 billion
• Earnings per share of $2.87
• YouTube advertising revenue totaling $10.26 billion, up from $10.01 billion
• Google Cloud revenue of $15.15 billion, exceeding predictions of $14.74 billion
• Traffic acquisition costs roughly stable at $14.87 billion

In Pichai’s own words, the company’s full-stack AI approach is driving momentum, contributing to revenue growth and innovation.

Microsoft Earnings

Microsoft released its Q1 2026 earnings, showing a 16% increase in search and advertising revenue compared to the previous quarter, though slightly lower than the 21% growth seen in the previous two quarters. Before that, quarterly ad growth fluctuated between 8% and 19%. The company noted that its search and news advertising revenue, excluding traffic acquisition costs, increased by 16%, with a 15% rise in constant currency terms.

The financial highlights include:

• Revenue reaching $77.7 billion, an 18% increase
• Operating income of $38.0 billion, up 24%
• Net income on a GAAP basis of $27.7 billion, up 12%, and a non-GAAP figure of $30.8 billion, up 22%
• Diluted earnings per share of $3.72 (GAAP), up 13%; $4.13 (non-GAAP), up 23%
• Exclusion of gains from OpenAI investments in non-GAAP results

The company’s advertising revenue growth quarter-over-quarter centers on search and news ads, with charts showing respective increases over previous periods.

Microsoft CEO Satya Nadella emphasized that their extensive cloud and AI initiatives, including Copilots in various domains, are significantly advancing impact and innovation. He discussed ongoing investments in AI technology to capitalize on upcoming opportunities.