Alphabet Inc Class C (NASDAQ:GOOG) stock rose 7.68% (As on April 30, 11:21:34 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings, showing revenue that topped expectations boosted by its surging cloud business. The revenue from Google Cloud was $20.03 billion vs. $18.05 billion estimated, according to StreetAccount. YouTube advertising revenue was $9.88 billion vs. $9.99 billion estimated, according to StreetAccount. YouTube subscriptions are now growing faster than YouTube ads. Traffic acquisition costs was $15.23 billion vs. $15.3 billion estimated, according to StreetAccount. Alphabet reported $35.7 billion in capital expenditures during the quarter. That includes real estate, servers, data centers and other infrastructure. Alphabet is pouring money into AI infrastructure to capitalize on exploding demand. Alphabet’s net income for Q1 2026 came in at $62.58 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. The company posted a $37 billion gain from equity securities, which analysts did not include in expectations for the quarter.
Meanwhile, Google Cloud beat Wall Street’s expectations, recording a 63% increase in revenue from a year ago. Google’s Cloud unit houses most of the company’s AI services and products. The company said the growth was led by an increase in Google Cloud Platform, or GCP, across enterprise AI Solutions and enterprise AI Infrastructure. The company said Google Cloud has a backlog of $460 billion. Search had a strong quarter with AI experiences driving usage, with queries at an all-time high at 19% revenue growth. Google’s advertising revenue came in at $77.25 billion, up 15.5% from the same time last year. Other Bets, which includes Alphabet’s self-driving car company Waymo, brought in $411 million — down from the $450 million in the year-ago quarter. During the quarter, Waymo surpassed 500,000 fully autonomous rides a week
GOOG in the first quarter of FY 26 has reported the adjusted earnings per share of $2.62, missing the analysts’ estimates for the adjusted earnings per share of $2.63, according to analysts polled by LSEG. The company had reported the adjusted revenue growth of 20 percent to $109.9 billion in the first quarter of FY 26, beating the analysts’ estimates for revenue of $107.2 billion.
The company also updated its 2026 capital expenditure guidance range to $180 billion to $190 billion, up from its previous estimate of $175 billion to $185 billion. Alphabet said in December it would acquire Intersect, a data center company, for $4.75 billion in cash and the assumption of debt.