The first one maybe for Philipp or Sundar. It's on agentic e-commerce and agentic travel. There's a lot of external Wall Street discussion about agentic e-commerce potentially monetizing at a lower rate than search. So the question is what factors are you most focused on to sort of ensure a smooth transition for your search business and for your advertisers as you move over to a more agentic world? And the second one, Sundar, is on Waymo. How far are we from an integration of Waymo into more of the core Gemini capabilities and the users on the platform taking your user data of where I'm going, what hotel I'm staying at, what airport I'm staying at and having integrated that into Waymo? If you can actually have users use their profiles to pre-schedule Waymos, how far off is that? What do we have to do? Philipp Schindler (CBO): Brian, great question. This is all early, but we see agentic experiences really as additive to the way people seek information. It helps us answer people's tough questions. It helps us — it helps people get stuff done, and it helps businesses in the process. And we're working on multiple agentic experiences across key verticals such as travel, commerce, shopping and so on, and we're paying a lot of attention to creating a seamless user experience but also to the fact that we need to integrate different partner ecosystems in a way that it creates value for them. And by the way, we're also working closely with a lot of our partners on the other side through our cloud services to improve their own agentic experiences. And so maybe we go a little deeper on the shopping side where we actually use AI already very actively to improve the shopping experience. As you know, we launched a more visual experience on AI Mode. That gives people a much more intuitive conversational way to shop. You can simply describe what you're looking for now like the way you talk to a friend, and we'll show you the visual shopping results. And then we think about building an agentic shopping future and it has to be one, again, that benefits both users and merchants here. And you know that AI O, we also introduced new agentic checkout, which will let shoppers use like agentic AI to buy products from merchant sites and so on. We have a partnership with PayPal to help merchants build agentic commerce experiences. We have new open protocols for agent-to-agent transactions and so on and so on. Sundar Pichai (CEO): And Brian, on Waymo, a great question. I was reflecting, I think, on the exact same topic. I'm scheduled to meet with the team to do a review on it in a few weeks out. Look, it is an exciting time. Waymo clearly is scaling up, particularly in 2026. And I think the possibility, as you said, of Gemini, particularly with the multimodal experience as well as services like YouTube, I think there's a real opportunity to make the in-car experience dramatically better. Definitely something we are excited about, and you'll see newer experiences in 2026 for sure.

Philipp, maybe you can just talk more about some of the drivers of the core search strength. And I guess, in particular, when you think about AI Overviews and AI Mode, we know that query growth is accelerating. But can you help us understand from there kind of what happens in terms of clicks per query and conversion rates and pricing in these AI-driven search formats? And then, Anat, can you talk about where you see opportunities in the core cost base as you look to make room to absorb the rapid growth in infrastructure and depreciation going forward? Philipp Schindler (CBO): So let me give you a bit of vertical color first. In Q3, Search and other revenues again delivered growth across all major verticals, as we said, was from retail and financial services. Health care was also a contributor to the growth here. Our new AI experiences, you mentioned the AI Overviews and AI Mode, continued to drive growth in overall queries, including commercial queries, really creating more opportunities for monetization. AI Overviews is scaling up and working for our entire user base. We're now scaled to over 2 billion users here, and we're continuing to expand ads in AI Overviews in English to more countries, across desktop, mobile and so on. And as I've shared before, for AI Overviews, even at our current baseline of ads below and within the AI's response, overall, we see the monetization at approximately the same rate. So over time, we're excited about the opportunity of richer experiences in AI Mode and AI Overviews to basically open up then the opportunity for also much richer placements. And I think as I've said on a prior call, we manage the business to drive great outcomes for our users and an attractive ROI for advertisers. We don't really manage to paid clicks and CPC targets. But as you will see in the 10-Q, paid clicks were up 7% year-on-year and CPCs were up 7% year-on-year. Anat Ashkenazi (CFO): Doug, and to your question around where else can we see more opportunity for efficiency and productivity, and I think you heard me say before, this is not a one-time type of effort but rather an ongoing way in which we manage the business, and the key here is that the more we drive productivity across our business, the more we can invest in the business for growth and obviously continue to drive improvement in the P&L. Some of the areas are things that you've heard us talk about in the past such as moderating the pace of headcount growth, optimizing real estate footprint but also as we invest more and more in our technical infrastructure, ensuring that we are optimizing that build-out and the overall technical infrastructure we have that a lot of the data centers, for example, that we build ourselves, so they're optimized and we make sure we do them in the most efficient way. Sundar Pichai (CEO): Eric, overall, I would say, we are seeing substantial demand for our AI infrastructure products, including TPU-based and GPU-based solutions. It is one of the key drivers of our growth over the past year. And I think on a going-forward basis, I think we continue to see very strong demand, and we are investing to meet that. I do think a big part of what differentiates Google Cloud effectively, we are the — we have taken a full — deep full stack approach to AI. So we are — and that really plays out, right? We are the only hyperscaler who is really building offerings on our own models, and we are also highly differentiated on our own technology. So to your question, I think that does give us the opportunity to continue driving growth in operating margins in Cloud as we have done in the past. And also, I think from a revenue, sets the infrastructure portion of our business to be a growth driver looking ahead as well. Philipp Schindler (CBO): And to the second part of your question, look, just taking a quick step back, we often describe YouTube's business as a flywheel. Obviously, it, first of all, starts with the creators, and we have significantly invested here to be the place that YouTube creators really call their home. That's a big piece of it, the #1 piece. Viewers, of course, YouTube has billions of monthly logged-in users and every day, people watch billions of hours of video. And we talked about how our recommendation systems are driving robust watch time growth and so on and so on. So on the monetization side, YouTube's business is really powered, I would say, at, let's call it, a twin engine monetization strategy, combining its advertising business and its growing subscription services. Both YouTube ads and subscription saw strong growth this quarter. And so looking at YouTube Music and Premium, users are, on average, delivering more value to creators, to music, media partners and YouTube itself than even ad-supported users do. So in other words, on average, a YouTube Music and Premium subscriber generates a meaningful higher gross profit than they were simply ad-supported users. Fans come from all over the world. You know this and this engagement through ads and subscription generates YouTube's revenues and funds what I started with, these creators here and this then drives more viewership and engagement and so on. And that's the flywheel. And so our priority continues like this growth cycle. We're happy with this twin engine monetization strategy.

Sundar, with the strong adoption of Gemini, AI Mode, and Overviews across the user base, are there any meaningful differences to call out kind of around the behavior and depth of engagement for those users across the entire Google ecosystem? And then, Philipp, I know we kind of asked this most quarters, but I'm curious kind of what some of the adoption you've seen around AI Overviews and Mode, how you see the economics of search evolving with the higher commercial and total query volume and how it kind of compares against the incremental cost to deliver these results. Sundar Pichai (CEO): Mark, look, I think obviously, AI Overviews are a natural part of the Google experience, and so engagement is very, very high. I would say AI Mode, you have varied cohorts that are people who are casual users, who are checking it out. And then — but there's a core group, which really likes AI Mode and is passionate about it, and so you see the early adopters. The product is resonating very strongly, and they are seeking it out. So I think that's how I would highlight the difference. With Gemini, again, a set of engaged user base who are seeking out the product and so on, but across the board, I think the trajectory has been we are definitely seeing in each of those use cases, a set of early adopters and then more people coming in and the people who are using it continue to use it more over time and report high user satisfaction. So I would say the underlying product metrics are pretty encouraging to see as well. Philipp Schindler (CBO): Regarding the second part of your question, I believe we have previously addressed this. Sundar discussed the query development earlier. As I mentioned, concerning the AI Overviews, even with our current ad baseline, whether ads appear above, below, or within the AI response, we are seeing monetization at roughly the same rate. This serves as a solid foundation for further innovation, and we are enthusiastic about the possibilities ahead. On the AI Mode side, we are currently testing it, and we will continue to test and learn before moving forward with any expansions. This ties in with our discussion on the overall development of commercial queries. I feel we are in a favorable position. Additionally, for queries that historically have not seen strong monetization, we believe there is an opportunity to enhance this with intelligent AI integration.

I have two questions, one for Philipp and one for Anat. Philipp, it's evident that when users engage with AI Mode, the query length significantly increases. Can you explain how this longer query length might affect your ability to enhance ROAS and what early advantages you are noticing from these longer queries? Anat, having joined Alphabet from a pharmaceutical company over a year ago, could you share how you are assessing ROIC internally? What initial indicators are you observing that suggest the spending is effectively leading to improved long-term returns? Philipp Schindler (CBO): Look, as Sundar shared, AI Mode now has over like 75 million daily active users in the U.S. and we see a strong and consistent week-over-week growth in usage since launch, and the queries doubled over the quarter. And as I also mentioned, we're testing ads in AI Mode. We'll continue to test before we expand any further. It's really too early to tell and go into any of the details of that testing. Anat Ashkenazi (CFO): Yes. The question regarding ROIC and our overall business shows that we are observing early signs of progress. Notably, we are currently generating significant returns from the Cloud business, which has already yielded billions of dollars from AI this quarter. We maintain a thorough framework to assess our long-term investments, aimed at ensuring resilience in our growth profile and meeting customer demand in the near to midterm. We evaluate the potential returns across the business, particularly in the Cloud sector, where the revenue generated is evident and customer demand currently outpaces supply. In our advertising sector, we are investing in transforming search through AIO and AI Mode, as mentioned by Philipp and Sundar. We are eager to see how our investments benefit advertisers and enhance features like YouTube recommendations. When we decide on long-term investments, we rigorously assess the potential returns and the timeframe for those returns, allowing us to invest confidently for the future.

Great. About 20% of Google's search queries are commercial historically, and you've talked a bunch on this call about how AI Overviews are kind of expanding the breadth of queries. Could you talk about how new products from the monetization side, like AI Max, are potentially increasing the percent of commercial queries? Philipp Schindler (CBO): AI Max enhances advertisers' ability to target a broader array of queries. There is also the question of whether queries actually rise with AI Mode, which Sundar addressed by highlighting potential opportunities. It's essential to distinguish between these two aspects. I believe there is a chance to expand into queries that may not be entirely commercial but have a related commercial potential, thereby offering more appealing advertising options while simultaneously creating a compelling user experience. Sundar Pichai (CEO): Yes. And the only thing I would add is just stepping back broadly, I think AI Overviews and AI Mode are dramatically improving search. We can see it in user satisfaction, user quality, all our metrics, and they're universal in nature. They apply across the universality of human needs. So I think we are seeing it in breadth. And so naturally, over time, that will apply to commercial categories as well.

I have two questions. First, it seems increasingly obvious that the new modes, such as Google with Gemini Overview, AI Overviews, AI Mode, and even ChatGPT, are expanding the addressable market for engagement and search-like activities. Can you share what makes you confident that this will also increase the addressable market for marketing activities and overall revenue tied to that behavior? That’s my first question. The second question is about how you view AI Mode, AI Overviews, and traditional Google Search. Do you envision a scenario in 12 to 24 months where all these will coexist? Will users be able to choose which mode they prefer, or will the algorithm determine the mode? Can you elaborate on how you see this developing over the next 12 to 24 months? Sundar Pichai (CEO): Ken, thanks. I believe we are in a dynamic moment, and we are responding to what people are trying to achieve. Search is clearly evolving, and with AI Overviews and AI Mode, we can offer a range of experiences for users. Over time, we plan to simplify these experiences, similar to how we developed universal search years ago by integrating text, image, and video search. We want to be mindful of meeting users' needs as they look for information. Gemini enables us to create a more personal and proactive AI assistant for users. The two surfaces, search and Gemini, allow us to cater to users' diverse needs. We will continue to identify opportunities to enhance the user experience. Overall, I believe this is an expansionary time, and we are seeing increased engagement from users. As they engage more, a portion of their journeys will be commercial. I anticipate this trend will continue over time.

Great. Just a couple. Sundar, I think you mentioned Gemini 3 is coming. Maybe you can comment on the pace of innovation in frontier models. Is there still just a tremendous amount of innovation? Or is it slowing at all? And then you mentioned a number of large deals signed in the last 9 months for cloud, which is great. Any changes in the economics of these deals as far as long-term profitability? Anything we should be aware of? Sundar Pichai (CEO): Thanks, Justin. Regarding the pace of frontier model research and development, I believe two things are true simultaneously. I am very impressed by how quickly the teams are executing and how much we are enhancing these models. However, it's also true that each previous model we are trying to improve is becoming increasingly capable. So while the pace of development is increasing, we are sometimes taking the necessary time to release a significantly better model, which may extend the timeline slightly. Nevertheless, the underlying pace is truly remarkable, and I am looking forward to our Gemini 3.0 release later this year. On the cloud front, I want to highlight our momentum; the number of deals over $1 billion that we have signed in the first three quarters of this year exceeds the totals from the previous two years. We are indeed experiencing strong momentum and executing efficiently. In terms of long-term economics, being a full-stack AI player and developing highly differentiated products based on our own technology will support our positive trajectory, as we've seen over recent years. Jim Friedland (Head of Investor Relations): Thanks, everyone, for joining us today. We look forward to speaking with you again on our fourth quarter 2025 call. Thank you, and have a good evening. null (Operator): Thank you, everyone. This concludes today's conference call. Thank you for participating. You may now disconnect.