Alphabet's net profit surged 44% to $160 billion on a trailing-12-month basis, driven by AI-powered Search and growing Google Cloud profitability.

Alphabet's total revenue rose 22% year over year in Q1 to nearly $110 billion, with Search delivering its fastest quarterly growth rate in nearly four years after Google rolled out new AI features powered by Gemini.

Operating income grew 30% over the year-ago quarter to $39 billion. CEO Sundar Pichai stated that since upgrading to Gemini 3, the company reduced the cost of core AI responses by more than 30%. Google Cloud operating profit jumped 203% year over year to more than $6.5 billion in the quarter.

Search remains Alphabet's biggest profit engine, accounting for 55% of Q1 revenue. However, 70% of Alphabet's revenue comes from advertising, making results vulnerable to softness in ad spending during recessions; the stock declined 39% in 2022.