Google smashes Q1 estimates with $109.9bn revenue. Cloud surges 63% past forecasts.
- EPS 2.82 (exp. 2.63),
- Raises dividend +5% to 0.22/shr
- Total revenue came in at $109.90bn, beating the $107.1bn consensus estimate and representing approximately 22% growth year-on-year from $90.2bn in Q1 2025
- Revenue excluding traffic acquisition costs reached $94.67bn versus a $91.57bn estimate
- Operating income of $39.70bn significantly exceeded the $36.19bn consensus forecast, pointing to margin leverage despite a heavy investment cycle
- Google Services revenue of $89.64bn topped estimates of $88.11bn, with Search and Other at $60.40bn versus a $59.08bn estimate
- Total Google advertising revenue of $77.25bn beat the $76.21bn estimate; YouTube ads were the sole miss at $9.88bn versus a $9.97bn estimate
- Google Cloud revenue of $20.03bn crushed the $18.41bn estimate, continuing the segment's acceleration from $17.66bn in Q4 2025 and $12.26bn in Q1 2025
- Capital expenditure of $35.67bn came in marginally below the $36.39bn estimate, with full-year 2026 capex guidance of $175-185bn remaining in place
- The report follows Alphabet's $32bn acquisition of cloud security firm Wiz, which closed on March 11 and is now integrated within Google Cloud
Alphabet delivered a sweeping beat across nearly every financial metric in its first-quarter 2026 results, posting total revenue of $109.90bn against a Wall Street consensus of $107.1bn, representing year-on-year growth of approximately 22% from $90.2bn in the same period a year earlier. The result marks what analysts had previewed as the company's strongest quarterly growth rate since 2022, and the actual figures exceeded even that already elevated expectation.
The headline that will dominate market discussion is Google Cloud. Revenue from the division hit $20.03bn in the quarter, running approximately $1.6bn or nearly 9% above the $18.41bn analyst estimate. That acceleration builds on a 48% year-on-year growth rate posted in Q4 2025 and compares to $12.26bn in Q1 2025, implying growth above 63% year-on-year. The result is the most direct evidence yet that Alphabet's aggressive AI infrastructure buildout is generating tangible enterprise revenue at scale. The Cloud backlog stood at $240bn entering the year, roughly four times annual Cloud revenue, and the Q1 print suggests that backlog is converting into recognised revenue faster than the market had modelled. Alphabet's acquisition of Wiz, the cloud security platform, closed on March 11 for approximately $32bn in what was the largest deal in company history. Though near-term revenue contribution from Wiz was not expected to be material, management commentary on integration momentum and pipeline traction will be closely watched by investors assessing the deal's strategic logic.
On the core advertising business, Google Search and Other revenue of $60.40bn exceeded the $59.08bn estimate and extended the narrative that AI Mode and AI Overviews, powered by Gemini, are expanding search engagement rather than replacing it. CEO Sundar Pichai had noted at Google Cloud Next that 75% of all new code written at Google is now AI-generated and that first-party models are processing 16 billion tokens per minute through direct customer APIs. That capacity underpins both the Cloud growth story and the Search monetisation thesis. Total advertising revenue of $77.25bn beat the $76.21bn consensus, providing further confirmation that the advertising market remains resilient despite macroeconomic uncertainty stemming from elevated energy prices following the US-Iran conflict and ongoing concerns about EMEA spending.
YouTube advertising was the one segment that fell short, coming in at $9.88bn versus a $9.97bn estimate. While marginal, the slight miss continues a pattern of YouTube revenue growth moderating from peak levels, and will be a focus area on the earnings call. The platform's FIFA World Cup 2026 highlights deal was expected to provide a near-term revenue lift, though the degree to which that boosted Q1 versus upcoming quarters remains to be seen.
Operating income of $39.70bn against a $36.19bn estimate was perhaps the most strategically significant beat in the report because it demonstrated margin leverage at a moment when investors had been pricing in meaningful compression from AI infrastructure depreciation costs. With capex at $35.67bn in the quarter, slightly below the $36.39bn forecast, the company appears to be executing its $175-185bn full-year 2026 spending plan in an orderly fashion rather than front-loading the buildout. That discipline, combined with strong Cloud margins, addresses the central concern that had hung over the stock: whether Alphabet could absorb one of the largest corporate capital expenditure programmes in history without destroying near-term profitability. On this report, the answer is a clear yes.
---
Earlier:
- Google has the widest gap between expectation and history: a 5.75% implied move against just a 1.4% four-quarter average — roughly 4x. The options market is looking at a few things: Cloud reacceleration, search resilience against AI overviews, and Gemini monetization.
提供 MainLink：Investinglive RSS Breaking News Feed
FX初心者には必須 無料のうちにGET！
