Revenue was $4.07 billion for the quarter, excluding sales passed on to partner sites, compared with a consensus analyst estimate of $4.06 billion. Net income was $1.48 billion, or $4.66 a share, from $1.25 billion, or $3.92, a year ago. Subtracting some expenses, including stock compensation, profit came in at $5.36 a share, beating analysts' prediction of $5.08.

Google's shares are down three percent in Nasdaq composite trading after the earnings news was announced. Its shares are up 44 percent year-to-date, but they are still down 17 percent over the past 12 months.

"We think Google has better times in front of it, not worse," David Garrity, of GVA Research, told Bloomberg TV. "If people are selling out now, they're doing it as the train is leaving the station."

Google CEO Eric Schmidt, in a press release, said Google is "focused on investing in technical innovation to drive growth." He characterized the quarter as "good" for Google, "especially given the continued," economic downturn. While speaking on a company conference call after the report came out, Schmidt said the search company's business "appears to have stabilized."

Anthony Massucci is a senior writer for DailyFinance. You may follow him on Twitter at hianthony.