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Alphabet Posts Strong Q1 as YouTube Ad Sales Rise 10.7% but Miss Forecasts

AI rollouts plus a swelling subscriber base point to broader revenue streams beyond ads.

Overview

  • Alphabet reported $109.9 billion in first‑quarter revenue, up 22% year over year, with net income of $62.6 billion.
  • YouTube ads brought in $9.88 billion, a 10.7% jump from a year ago that came in just below the roughly $9.99 billion Wall Street expected.
  • Usage on YouTube kept climbing as viewers watched more than 200 million hours per day and over 10 million channels posted Shorts each day.
  • Paid subscriptions across YouTube Premium and Google One reached about 350 million, following recent U.S. price hikes for Premium, Music, and Premium Lite.
  • Google Cloud revenue grew 63% and its backlog topped $460 billion, with executives citing AI products like the Gemini app as momentum drivers across the business.