Alphabet Q1 2026 Earnings Highlight Cloud Growth and AI Investments Alphabet Inc. (GOOGL) reported first-quarter 2026 earnings on Wednesday, surpassing Wall Street expectations with revenue of $109.9 billion, up 20% year-over-year and marking its strongest quarterly growth since 2022. The company’s cloud division, Google Cloud, achieved revenue of $20.02 billion, exceeding the $18.05 billion estimated by StreetAccount. Alphabet also updated its full-year capital expenditure range to $180 billion to $190 billion, up from its previous estimate of $175 billion to $185 billion. CEO Sundar Pichai highlighted that enterprise AI solutions had become the primary growth driver for Google Cloud, with Gemini Enterprise’s paid monthly active users rising 40% from the previous quarter. The company’s net income for Q1 2026 reached $62.57 billion, or $5.11 per share, up 81% compared to the year prior. A year ago, net income was $34.54 billion, or $2.81 per share. Google Cloud’s revenue growth was attributed to increased adoption of enterprise AI solutions and infrastructure. The company reported a backlog of $460 billion for its cloud services. Pichai noted that compute constraints limited cloud revenue growth, stating, “Our cloud revenue would have been higher if we were able to meet the demand.” Alphabet’s advertising revenue grew 15.5% to $77.25 billion, while YouTube advertising slightly missed expectations at $9.88 billion. Chief business officer Philipp Schindler noted that YouTube subscriptions are now growing faster than ad revenue. Other Bets, which includes Alphabet’s self-driving car company Waymo, generated $411 million in revenue, down from $450 million in the same quarter of 2025. Waymo surpassed 500,000 fully autonomous rides per week and began fully autonomous operations in Nashville.#sundar_pichai #google_cloud #waymo #alphabet_inc #intersect
