Alphabet Shatters Q1 Estimates with a 63% Surge in Google Cloud Revenue
Alphabet delivered a stellar performance in Q1 2026, reporting earnings on April 29. The company’s revenue soared to $109.9 billion, marking a 22% increase year-over-year and surpassing analyst expectations of $107.1 billion. Alphabet also posted earnings per share of $5.11, nearly doubling Wall Street’s estimate of $2.62.
The star of the show was Google Cloud, which generated a whopping $20.03 billion in revenue. This represents a remarkable 63% increase year-over-year, significantly above the estimated $18.05 billion. CEO Sundar Pichai revealed that the company’s cloud backlog nearly doubled quarter-on-quarter to over $460 billion. However, he noted that the division is “compute constrained” and revenue “would have been higher” if it could meet the full demand.
Alphabet has revised its 2026 capital expenditure guidance to between $180 billion and $190 billion, up from the previous range of $175-$185 billion. This adjustment reflects the company’s massive investments in AI infrastructure.
- Search revenue grew by 19%
- Waymo surpassed 500,000 fully autonomous rides per week
Following the announcement, Alphabet’s stock jumped over 6%, outperforming other Big Tech earnings reports.
Source: CNBC