A slower quarter, not a shrinking one
YouTube’s advertising revenue hit $11.21 billion in Q3 2026, up 9.2% year over year and below analyst projections. That continues a clear cooling: growth was 15% in the year-earlier period, 13% in Q2 and 11% in Q1 of this year.
Google’s total advertising revenue, including YouTube, reached $80.0 billion, up 10.6%. YouTube is now growing more slowly than the wider Google ads business, a reversal media buyers should note.
Subscriptions are doing the heavy lifting
YouTube crossed 150 million Music and Premium subscribers globally, including trials, up from 125 million in March 2025. After topping $60 billion in subscription revenue in 2025, chief business officer Philipp Schindler said subscription revenue is now growing faster than advertising.
That matters because YouTube’s monetization story is becoming a two-engine business. Advertisers still provide the foundation, but the faster growth now sits on the consumer-paid side. Schindler also said more than 20 million videos are uploaded daily, keeping supply abundant.
Why the Alphabet miss matters
Alphabet posted revenue of $127.6 billion, up 25%, but net income fell 25% to $26.17 billion, and EPS of $2.12 came in below the $3.02 consensus. A net loss on equity securities of $8.7 billion weighed on the bottom line. Google Cloud doubled to $30.7 billion, which is why Alphabet’s overall growth dwarfs YouTube’s ad performance.
- YouTube ad revenue: $11.21B, +9.2% YoY
- YouTube subscriptions: 150M+, crossing 125M in March 2025
- Alphabet capex: $51.36B, up 114% YoY
What to watch next
Alphabet kept its 2026 capex guidance at $195 billion-$205 billion and expects spending to rise significantly in 2027. CEO Sundar Pichai said the Gemini AI app has reached 1 billion users, while “Made on YouTube” introduced more than 30 products, including a custom feed feature.
For media planners, the number to track is the growth slope, not just the top line. Don’t read a slower quarter as a shrinking one; ad revenue is still climbing even as the pace eases.
Source: Variety
