Alphabet reports Q1 2026 revenue of $109.9 billion, up 22%, with Google Cloud revenue reaching $20 billion and backlog nearly doubling to over $460 billion on strong AI demand.

Alphabet's consolidated revenue rose 22% to $109.9 billion in Q1 2026, with Search and Other revenue up 19% to $60.4 billion and Google Cloud revenue accelerating 63% to $20 billion. Operating income increased 30% to $39.7 billion with a 36.1% operating margin.

Google Cloud backlog nearly doubled quarter-on-quarter to over $460 billion, driven by strong enterprise AI offerings and TPU hardware sales; management expects to recognize just over 50% of the backlog as revenue over the next 24 months. First-party models processed more than 16 billion tokens per minute via direct API use, up from 10 billion the prior quarter.

Alphabet raised full-year 2026 CapEx guidance to $180 billion to $190 billion from $175 billion to $185 billion, and expects 2027 CapEx to significantly increase compared to 2026 due to unprecedented internal and external demand for AI compute resources. Q1 CapEx was $35.7 billion, with about 60% for servers and 40% for data centers and networking equipment.

Paid subscriptions across Alphabet reached 350 million, with YouTube and Google One as key drivers. Gemini Enterprise paid monthly active users grew 40% quarter-over-quarter, and new customer acquisition for Google Cloud doubled compared to the same period last year, with customers exceeding initial commitments by 45%.