The market for online advertising has been strained globally on fears that consumers may curb their spending as they grapple with a spike in interest rates and runaway inflation, prompting companies such as Snap Inc to issue a revenue growth warning.
Shares in Alphabet fell 2.5% in trading after the bell.
Google’s advertising revenue was $54.48 billion in the third quarter, compared with $53.13 billion last year.
The company said total revenue was $69.09 billion in the quarter ended Sept. 30, compared with $65.12 billion a year earlier.
Analysts on average expected revenue to be $70.58 billion, according to Refinitiv data.
Net income fell to $13.91 billion, or $1.06 per share, from $18.94 billion, or $1.40 per share, a year earlier.