Alphabet Poised for Strong Third-Quarter Search Revenue Growth, Deutsche Bank Says

12:49 PM EDT, 10/19/2026 (MT Newswires) -- Alphabet (GOOG, GOOGL) likely saw "relatively healthy" Google search revenue growth in the third quarter, driven by higher pricing amid solid search volume, Deutsche Bank said Monday. The buyside expects Alphabet's currency-neutral search revenue growth in line with Wall Street's estimates of 14% year over year, representing a 190-basis-point deceleration due to tougher comparisons, according to the note. "Our channel checks suggest search revenue growth remains relatively healthy, driven largely by higher pricing, incremental (AI overview) ad revenue, and a gradual decline in the efficacy of (search engine optimization), which has supported auction dynamics in paid channels," Deutsche Bank Analyst Benjamin Black said. Alphabet is scheduled to report September-quarter results Oct. 28. Data checks indicate steady growth in desktop and mobile web traffic, alongside stable-to-improving daily active users and engagement across Chrome and the Google App, Black said. Google Cloud Platform expansion likely accelerated during the quarter as it increasingly serves as a core secondary platform for enterprise customers while capturing broader spending from AI native firms, the note showed. "We believe that Google should be a leading contender within consumer agents," Black added. "It has access to Gmail, user's search queries, map data, the company controls Android, has existing merchant relationships etc., which in theory should provide some of the key foundational pillars to launch a successful personal agent." The brokerage reiterated its buy rating on Alphabet's stock with a $430 price target. Alphabet's class C shares were up 1.2% in Monday trading, and have increased 8.7% so far this year. The class A stock was up 1.3%. Earlier this month, Google partnered with Constellation Energy (CEG) on 3,590 megawatts of power. The partnership includes a $4.3 billion investment by Constellation and a 20-year power purchase deal. Price: 341.38, Change: +4.47, Percent Change: +1.33