Alphabet’s first-quarter revenue topped expectations due to a boost in its surging cloud business.
Earnings per share came in at US$5.11, which is an increase from last year’s $2.81.
The company reported revenue of US$109.9 billion, surpassing LSEG's expectations of $107.2 billion.
Alphabet and Google CEO Sundar Pichai said this was driven by the company’s AI experiences.
“Our AI investments and full stack approach are lighting up every part of the business,” he said.
“Search had a strong quarter with AI experiences driving usage, queries at an all-time high, and 19% revenue growth.”
Other figures that were being watched by Wall Street included Google Cloud, YouTube advertising and Traffic acquisition costs.
Google Cloud exceeded the expectation of $18.05 billion, coming in at $20.2 billion.
“Google Cloud revenues grew 63% with backlog nearly doubling quarter on quarter to over $460 billion,” Pichai said.
YouTube advertising fell below expectations of $9.99 billion at $9.88 billion, alongside traffic acquisition costs, which came in at $15.22, paling in comparison to expectations of $15.3 billion.
This comes as YouTube subscriptions are now growing faster than YouTube ads, according to chief business officer Philipp Schindler.
The company also updated its 2026 capital expenditure guidance range to $180 billion to $190 billion, up from its previous estimate of $175 billion to $185 billion.
Alphabet said in December it would acquire Intersect, a data centre company, for $4.75 billion in cash and the assumption of debt.
Alphabet has also outperformed its Magnificent Seven peers with its shares growing up to 21% this month.
In February, Waymo announced it raised $16 billion in a new round led by outside investors, valuing the company at $126 billion.
Alphabet (NASDAQ: GOOG) stock closed 0.05% lower at $347.31, but grew 6.46% in after-market trading to $369.76. Its market cap is $4.22 trillion.
