Alphabet reported first quarter 2026 revenue of $109.9 billion, a 22% year-over-year increase, and diluted EPS of $5.11, significantly exceeding analyst expectations. The results were primarily driven by accelerating growth in Google Cloud and continued strength in the core Search business.
Key Highlights
- Google Cloud revenue growth accelerated significantly, rising 63% to $20.0 billion, as the segment's operating income more than tripled to $6.6 billion.
- The core Google Search & other segment also demonstrated robust performance, with revenue increasing 19% to $60.4 billion.
- Overall operating margin expanded by 2 percentage points to 36.1% as operating income grew 30%, a notable performance amid increased capital expenditures.