Alphabet Inc. reported first-quarter 2026 revenue of $109.9 billion, a 22% increase from the prior year, the company announced today.
This financial update covers the period from January through March, highlighting strong performance across its diverse business segments, particularly Google Cloud and Search.
Google Services revenue rose 16% to $89.6 billion. This growth was primarily driven by a 19% increase in Google Search and other, alongside Google subscriptions, platforms, and devices. YouTube ads also contributed with an 11% increase.
Google Cloud saw a 63% revenue surge, reaching $20.0 billion for the quarter. The segment’s annual run rate now exceeds $80 billion, with operating income reaching nearly $6.6 billion in the quarter.
Overall, Alphabet’s net income for the quarter surged 81% to $62.58 billion. Earnings per share (EPS) increased 82% to $5.11.
Alphabet CEO Sundar Pichai attributed the strong start to 2026 to the company’s investments in artificial intelligence (AI). Pichai specifically noted that enterprise AI solutions have become the primary growth driver for Google Cloud. Furthermore, Google Cloud’s backlog nearly doubled quarter-over-quarter, exceeding $460 billion, reflecting substantial demand for AI and enterprise infrastructure.
The company is updating its capital expenditure guidance for 2026 to between $180 billion and $190 billion, an increase from an earlier estimate of $175 billion to $185 billion. Alphabet also anticipates a significant increase in capital expenditure for 2027.
Alphabet now reports 350 million paid subscriptions across its consumer services, with YouTube and Google One identified as key drivers. Meanwhile, Waymo, Alphabet’s autonomous driving unit, surpassed 500,000 fully autonomous rides per week. Additional details on the company’s financial performance are available on the Alphabet Investor Relations website.
