Alphabet (GOOGL) posted Q1 revenue of $109.9B and EPS of $5.11, extending its streak of double-digit growth to 11 consecutive quarters. Google Cloud was the standout performer, surging 63% year-over-year to surpass $20B for the first time. (Source: SEC EDGAR 8-K, April 29, 2026)
Earnings at a Glance
- Revenue: $109.9B, +22% YoY
- Operating Income: $39.7B, +30% YoY
- Operating Margin: 36.1% (+2pp YoY)
- Net Income: $62.6B, +81% YoY
- Diluted EPS: $5.11 (+82% YoY)
Google Cloud +63% — AI Tailwinds in Full Force
By segment, Google Cloud generated $20B in revenue, up 63% year-over-year, driven by surging demand for enterprise AI solutions and AI infrastructure. Google Services revenue totaled $89.6B, up 16%.
- Google Search & Other: $60.4B (+19% YoY)
- YouTube Ads: $9.9B
- Google Subscriptions, Platforms & Devices: $12.4B (+19% YoY)
- Google Cloud: $20B (+63% YoY)
- Google Network: $7.0B (-4% YoY)
AI Momentum — Gemini, Waymo & 350M Paid Subscribers
CEO Sundar Pichai stated that "AI investment and a full-stack approach are igniting every business segment." Key AI metrics include: 350M paid subscribers (led by YouTube and Google One), Gemini Enterprise paid MAU up +40% quarter-over-quarter, Gemini API throughput at 16B tokens per minute (+60% QoQ), and Waymo surpassing 500,000 fully autonomous rides per week. The cloud backlog nearly doubled quarter-over-quarter, exceeding $460B.
A Note on Net Income
Net income of $62.6B reflects an 81% year-over-year surge, but includes $37.7B in unrealized investment gains from the mark-to-market valuation of non-public equity holdings. Excluding this item, the underlying operating-based earnings are meaningfully lower. The company also issued $31.1B in senior unsecured notes during the quarter.
Market Reaction
Google Cloud's 63% growth significantly exceeded market expectations. The $460B+ cloud backlog signals strong forward visibility into AI infrastructure demand. Alphabet also raised its dividend by 5% to $0.22 per share. Notably, all three hyperscalers — Alphabet, Microsoft Azure, and Amazon AWS — reported accelerating cloud growth this quarter.
