Alphabet reports Q1 net sales up 24% YoY to $94.66 billion, with Google Cloud revenue soaring 63% YoY to $20 billion

Alphabet's Q1 EPS surged 82% to $5.11, exceeding expectations of $2.64 per share by 93%. Net sales reached $94.66 billion, up 24% YoY and topping estimates of $92.22 billion. Google Search, YouTube, and cloud services all showed strong growth.

Google Cloud reported its fastest growth rate ever at 63% YoY to $20 billion in Q1 revenue—outpacing Microsoft's cloud revenue growth of 29% YoY to $54.5 billion and Amazon Web Services' 28% spike to $37.6 billion. Growth was driven by Alphabet's enterprise AI infrastructure offerings, including Gemini-based solutions, with a cloud backlog that nearly doubled to over $460 billion.

Gemini Enterprise is seeing 40% growth quarter over quarter in paid monthly active users. Alphabet's paid subscribers across consumer AI plans, YouTube, and Google One (cloud storage subscription) reached a record 350 million. Alphabet increased its 2026 capital expenditures guidance due to surging AI cloud demand, keeping it beneath Amazon's updated commitment of $200 billion and in line with Microsoft's plan to spend $190 billion.