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Alphabet beats on revenue, with cloud booming 63% and topping $20 billion

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Why This Matters

Alphabet's latest earnings highlight the company's robust growth, driven by a booming cloud business and enterprise AI solutions, signaling a strategic shift towards AI-driven revenue streams. This performance underscores the increasing importance of cloud and AI services in the tech industry, offering both opportunities and competitive pressures for other players and consumers alike.

Key Takeaways

Google CEO Sundar Pichai looks on during the AI Impact Summit in New Delhi on Feb. 19, 2026.

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.

Earnings per share: $5.11

$5.11 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

$20.02 billion vs. $18.05 billion estimated, according to StreetAccount YouTube advertising: $9.88 vs. $9.99 billion estimated, according to StreetAccount

$9.88 vs. $9.99 billion estimated, according to StreetAccount Traffic acquisition costs: $15.22 vs. $15.3 billion estimated, according to StreetAccount

The company beat Wall Street's expectations for revenue, growing 20% increase from last year, marking the company's highest rate of growth for any quarter since 2022.

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