Alphabet (GOOG) investor relations material

Executive summary

• Revenue for Q1 2026 was $109.9 billion, up 22% year-over-year, marking the 11th consecutive quarter of double-digit growth, driven by strong AI-led performance in Search, Cloud, and subscriptions.

• Net income surged 81% to $62.6 billion, with diluted EPS up 82% to $5.11.

• Operating income increased 30% to $39.7 billion, with operating margin expanding to 36.1%.

• Paid subscriptions reached 350 million, led by YouTube and Google One, with record adoption of consumer AI plans.

• Waymo expanded to 11 major U.S. cities, surpassing 500,000 fully autonomous rides per week.

Financial highlights

• Google Services revenue grew 16% year-over-year to $89.6 billion, driven by Search (+19%), subscriptions/platforms/devices (+19%), and YouTube ads (+11%).

• Google Cloud revenue surged 63% to $20.0 billion, with backlog nearly doubling to over $460 billion.

• Operating cash flow was $45.8 billion; capital expenditures reached $35.7 billion, mainly for technical infrastructure.

• Other income (expense), net, was $37.7 billion, mainly from unrealized gains on equity securities.

• Ended quarter with $126.8 billion in cash and marketable securities.

Outlook and guidance

• AI investments and product innovation expected to continue driving growth across all business segments.

• CapEx guidance for 2026 raised to $180–$190 billion, reflecting increased AI infrastructure investment and acquisitions.

• Revenue backlog stands at $467.6 billion, with over 50% expected to be recognized in the next 24 months, mainly from Google Cloud.

• Wiz acquisition to be reported in Cloud segment, with a low single-digit headwind to Cloud operating margin for 2026.

• FX tailwind expected to be 1 percentage point in Q2, down from 3 points in Q1.