Google CEO Sundar Pichai looks on at the AI Impact Summit in New Delhi on February 19, 2026.
Ludovic Marin | AFP | Getty Images
alphabet announced its first-quarter results after the bell on Wednesday, showing that revenue exceeded expectations due to rapid growth in its cloud business. The stock price rose in response to this news.
Earnings per share: $5.11 Revenue: $109.9 billion compared to $107.2 billion expected by analysts surveyed by LSEG
It’s unclear whether EPS will match the $2.63 expected by analysts surveyed by LSEG.
Wall Street also took note of several other numbers in the report.
Google Cloud: $20.02 billion vs. $18.05 billion (estimated by StreetAccount) YouTube advertising: $9.88 vs. $9.99 billion (estimated by StreetAccount) Traffic acquisition cost: $15.22 vs. $15.3 billion (estimated by StreetAccount)
The company beat Wall Street’s revenue expectations, posting a 20% year-over-year increase in sales, the highest quarterly growth rate since 2022.
“Our enterprise AI solutions were the primary growth driver in the cloud for the first time in the first quarter,” CEO Sundar Pichai told analysts on an earnings call.
Net income was $62.57 billion, an 81% increase from the previous year.
Alphabet stock has outperformed the Magnificent Seven by 21% this month, outperforming its peers, and tech stocks are coming off their best month since April 2020, with the Nasdaq up 14% this month as of Wednesday’s close.
Despite concerns that rising oil prices and supply chain disruptions from the Iran war will lead to higher costs for AI infrastructure, Wall Street continues to move into the space.
All four hyperscalers – Alphabet, Amazon, Meta and Microsoft – reported earnings on Wednesday, giving investors their first update since the US began combat operations in Iran in late February.
Google Cloud beat Wall Street expectations, posting a 63% year-over-year revenue increase. Google’s cloud division houses most of the company’s AI services and products.
The company said this growth was driven by Google Cloud Platform (GCP) increases across enterprise AI solutions and enterprise AI infrastructure. Google Cloud has a $460 billion backlog, according to the company.
Pichai said Gemini Enterprise’s monthly active users increased 40% from the previous quarter.
Google’s advertising revenue was $77.25 billion, an increase of 15.5% from the same period last year.
Revenue from other bets, including Alphabet Inc.’s self-driving car company Waymo, was $411 million, down from $450 million in the same period last year. Waymo completed more than 500,000 fully autonomous rides per week during the quarter, the company announced Wednesday.
Waymo announced in February that it had raised $16 billion in a new round led by outside investors, valuing the company at $126 billion. Waymo recently announced that it is ready to bring its self-driving cars to Dallas, Houston, San Antonio, and Orlando. During the quarter, the company began fully autonomous operations in Nashville ahead of a planned commercial launch. lift later this year.
Alphabet’s daily stock price chart.
