Alphabet topped Wall Street estimates for Q1 revenue and profit, driven by a record performance from its cloud unit fueled by enterprise AI spending. Shares rose about 4% in extended trading.
Total revenue climbed 22% to $109.9 billion, beating the $107.2 billion consensus. Google Cloud revenue surged 63% to $20 billion, tripling operating income to $6.6 billion. The cloud backlog nearly doubled quarter-over-quarter to over $460 billion.
CEO Sundar Pichai said 2026 is off to a "terrific start," with AI investments lighting up every part of the business. Capital spending more than doubled to $35.67 billion, slightly below estimates.
Alphabet remains the third-largest cloud provider behind AWS and Microsoft Azure, but has secured major AI partnerships with Meta and Palo Alto Networks. Its Gemini chatbot drove the strongest quarter ever for consumer AI, and a partnership to power Apple's Siri upgrades is expected to expand Google's reach significantly.