Alphabet Inc. (GOOGL) reported a strong Q1 on Wednesday, with net sales rising 24% year-over-year to $94.66 billion, surpassing estimates of $92.22 billion. Earnings per share (EPS) soared 82% to $5.11, significantly exceeding expectations of $2.64 per share.
In a competitive landscape, Google Cloud achieved a record revenue growth of 63% year-over-year, totaling $20 billion. This includes a notable rise in the company’s enterprise AI infrastructure offerings, with a backlog that has doubled to over $460 billion. Alphabet also reported a record of 350 million paid subscribers across its services.
The company’s capital expenditure (CapEx) outlook for 2026 has been increased to $180-$190 billion, focusing on AI technical infrastructure. Alphabet management noted that cloud revenue could have been even higher if capacity constraints hadn’t existed, highlighting the rapid growth in AI demand.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
