While other tech giants are worrying investors with their spending, Alphabet is proving that its AI bets are already paying off big time. The stock is surging after hours.
The Big Numbers: Revenue hit $109.9B (+22% YoY), marking the 11th consecutive quarter of double-digit growth.
Cloud is a Monster: Google Cloud revenue skyrocketed 63% to $20B, crushing the $18B estimate. Even more impressive? The backlog nearly doubled to over $460B.
The EPS Miracle: Earnings per share landed at $5.11—nearly double the $2.63 analysts expected.
AI Everywhere:
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Gemini: 500M downloads and a 40% QoQ jump in Enterprise users.
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TPU Success: Google’s custom AI chips are giving them a massive efficiency edge.
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Search & YouTube: Both remain rock solid, growing 19% and 11% respectively.
Market Reaction: Alphabet is the star of the "Magnificent Seven" tonight, with the stock jumping 6% after hours while peers struggle to stay green.
The Takeaway: Sundar Pichai has flipped the script. Alphabet isn't just a search company anymore—it’s an AI powerhouse with the margins to prove it.
Alphabet Q1 2026 Earnings Release
ChartMill Market Desk