Alphabet Inc. (GOOGL) reported first-quarter 2026 adjusted earnings of $5.11 per share, surpassing the Zacks Consensus Estimate by 93.6%. Quarterly revenues reached $109.9 billion, an increase of 21.8% year over year. The company also noted a significant acceleration in its AI initiatives, with Google Cloud revenues growing 63% year over year to $20 billion and an operating income of $6.6 billion.
Alongside robust cloud growth, Alphabet raised its 2026 capital expenditure target to $180-190 billion, with expectations for a further increase in 2027. The backlog for cloud contracts reached approximately $462 billion, fueled by increasing demand for its AI solutions, including its Gemini platform, which saw a 40% quarter-over-quarter growth in paid monthly active users.
For 2026, consensus estimates predict revenues of $421.79 billion, a year-over-year increase of 23%, and earnings per share of $14.01, indicating a 29.6% rise. For 2027, expected revenues are $509.77 billion with an EPS of $14.59, marking a 4.1% increase from the previous year.
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