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Alphabet Posts Big Q1 Beat as AI Lifts Google Cloud 63%

Management signals a larger AI compute buildout to catch up with demand.

Overview

  • Alphabet reported Q1 revenue of $109.9 billion and earnings of $5.11 per share, topping Wall Street forecasts.
  • Google Cloud sales rose 63% to $20 billion, and the backlog nearly doubled to about $460 billion as enterprises locked in AI projects.
  • Search revenue grew 19% year over year, easing fears that AI chatbots would pull users away from Google’s core product.
  • CEO Sundar Pichai said AI demand outpaced available capacity, and Google is adding compute to support growth across products and services.
  • Shares rose about 9% after the release as firms including Roth Capital, RBC Capital, and Citizens raised price targets on stronger AI-driven momentum.