The news: Google parent Alphabet reported strong Q3 earnings on Wednesday, with revenues growing 16% YoY to $102.35 billion, while Google Search & Other, YouTube Ads, and Google subscriptions, platforms, and devices all saw double-digit growth.

But Google simultaneously experienced a notable loss in an ongoing antitrust case that could carry implications for the future of search advertising.

By the numbers:

• Google Search & Other revenues: $56.6 billion, up from $49.4 billion in 2024.
• Net income: Up 33% to $34.98 billion.
• Google advertising: $74.18 billion, up from $65.85 billion in 2024.
• YouTube ads: $10.26 billion, up from $8.92 billion in 2024.

Google shares were up more than 8% in pre-market trading Thursday.

Key insights:

• Google’s AI strategy is driving growth. Google attributed its first $100 billion quarter partially to its “full stack approach to AI,” including the rollout of global AI Overviews and AI Mode in Search. Google also noted that the Gemini App has surpassed 650 million monthly active users.
• YouTube remains dominant in digital video. The company noted over 300 million paid subscriptions led by YouTube Premium and Google One, while we forecast continued growth in time spent with YouTube as it overtakes digital video leaders like Netflix.
• Google isn’t feeling the impact of tariffs yet. Despite broader talks of economic uncertainty hindering ad businesses, Google’s strong growth across its ad services proves that it’s remained resilient to economic headwinds so far.

But Google is vulnerable: Despite another successful quarter under its belt, Google is facing broader challenges. A federal judge ruled in favor of online publishers and advertisers on Tuesday in an antitrust case where Google is accused of illegally monopolizing the digital ad marketplace.

While final arguments are set for November, proposed remedies include a Justice Department request that Google divests Adx and ad server DoubleClick for Publishers. A breakup would fundamentally reshape how open-web ads are bought and sold, creating a more competitive landscape where Google’s rivals could access multibillion-dollar opportunities and Google could lose its ad tech dominance.

What it means for marketers: Google will remain a cornerstone of successful ad strategies, at least in the short-term. Double-digit revenue growth and its continued leadership in search, advertising, and AI make Google an indispensable channel for brands—but marketers must keep a close eye on legal outcomes that would reshape the ad tech ecosystem.

A decision against Google would open new opportunities for competing platforms, necessitating that marketers proactively plan for a future that is less Google-dominant. Planning investment in emerging AI-driven platforms, retail media, and other channels will mitigate risk and unlock new ROAS opportunities.