Alphabet beat Wall Street expectations for first-quarter revenue.

Google Cloud topped $20 billion, growing 63% over last year.

The enterprise also updated its full-year capital expenditure range to as much as $190 billion.

Alphabet reported first-quarter earnings after the bell Wednesday, showing revenue that topped expectations boosted by its surging cloud business. Shares climbed following the report.

Revenue: $109.9 billion vs $107.2 billion expected by analysts polled by LSEG

It is unclear if EPS was comparable to the $2.63 expected by analysts polled by LSEG.

Wall Street was also watching several other numbers in the report:

Google Cloud: $20.02 billion vs. $18.05 billion estimated, according to StreetAccount

YouTube advertising: $9.88 vs. $9.99 billion estimated, according to StreetAccount

Traffic acquisition costs: $15.22 vs. $15.3 billion estimated, according to StreetAccount

The organization beat Wall Street’s expectations for revenue, growing 20% from last year and marking its highest rate of growth for any quarter since 2022.

“Our enterprise AI solutions have become our primary growth driver for cloud for the first time in Q1,” CEO Sundar Pichai told analysts on the earnings call.  This also touches on aspects of bear market.

Gemini Enterprise’s paid monthly active users grew 40% from the previous quarter, Pichai stated in a release.

The corporation also updated its 2026 capital expenditure guidance range to $180 billion to $190 billion, up from its previous estimate of $175 billion to $185 billion. Alphabet remarked in December it would acquire Intersect, a data center enterprise, for $4.75 billion in cash and the assumption of debt.

CFO Anat Ashkenazi also commented it expects the company’s 2027 CapEx to “significantly increase” compared to 2026.In capital expenditures during the quarter,

Alphabet reported $35.7 billion. That includes real estate, servers, data centers and other infrastructure. Alphabet is pouring cash into AI infrastructure to capitalize on exploding demand.

“We are compute constrained in the near term,” Pichai stated on the earnings call. “Our cloud revenue would have been higher if we were able to meet the demand.”

Alphabet stock has outperformed its Magnificent Seven peers this month, up 21%, and tech stocks are poised to wrap up their best month since April 2020, with the Nasdaq up 14% for the month as of Wednesday’s close.

Wall Street has been piling into the sector despite concerns that surging oil prices and supply chain disruptions from the war in Iran will lead to rising costs for AI infrastructure. The four hyperscalers — Alphabet, Amazon, Meta and Microsoft — all reported results on Wednesday, updating investors for the first time since the U.S. began combat operations in Iran in late February.

Alphabet’s net income for Q1 2026 came in at $62.57 billion, or $5.11 per share, up 81% compared to the year prior. A year ago, net income was $34.54 billion, or $2.81 per share.

Google Cloud beat Wall Street’s expectations, recording a 63% growth in revenue from a year ago. Google’s Cloud unit houses most of the company’s AI services and products.

The enterprise commented the growth was led by an expansion in Google Cloud Platform (GCP) across enterprise AI Solutions and enterprise AI Infrastructure. The firm mentioned Google Cloud has a backlog of $460 billion.

Search had a strong quarter with AI experiences driving usage, with queries at an all-time high at 19% revenue growth.

Google’s advertising revenue came in at $77.25 billion, up 15.5% from the same time last year.

YouTube advertising missed Wall Street’s expectations, reporting $9.88 billion for the quarter. YouTube subscriptions are now growing faster than YouTube ads, remarked chief business officer Philipp Schindler.

Other Bets, which includes Alphabet’s self-driving car corporation Waymo, brought in $411 million — down from the $450 million, the same time last year. During the quarter, Waymo surpassed 500,000 fully autonomous rides a week, the enterprise remarked Wednesday.

Waymo in February published it raised $16 billion in a recent round led by outside investors, valuing the enterprise at $126 billion. Waymo commented recently it’s ready to bring its self-driving vehicles to Dallas, Houston, San Antonio and Orlando. During the quarter, the corporation began fully autonomous operations in Nashville, ahead of a planned commercial launch with Lyft later this year.

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