{"id":19042,"date":"2026-04-27T21:51:18","date_gmt":"2026-04-27T21:51:18","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/19042\/"},"modified":"2026-04-27T21:51:18","modified_gmt":"2026-04-27T21:51:18","slug":"alphabet-earnings-on-tap-with-gemini-ai-spending-updates-in-focus-with-stock-near-record-high","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/19042\/","title":{"rendered":"Alphabet earnings on tap with Gemini, AI spending updates in focus with stock near record high"},"content":{"rendered":"\n

Google parent Alphabet (GOOG<\/a>, GOOGL<\/a>) will report its first quarter results on Wednesday, with the company set to offer key updates on its Gemini model, Google Cloud revenue, and its investment plans as investors see the company as one of the big AI winners this year.<\/p>\n

Alphabet stock has climbed roughly 30% over the last six months, beating out Amazon (AMZN<\/a>), up 15%, and Microsoft (MSFT<\/a>), which is off about 20%.<\/p>\n

Much of that is thanks to the success of Google\u2019s cloud platform and Gemini artificial intelligence models. That\u2019s helped the company\u2019s cloud revenue accelerate over the last few quarters, topping $17.66 billion in Q4, and it doesn\u2019t look like it\u2019s slowing down anytime soon.<\/p>\n

Google Cloud revenue is projected to be $18.4 billion. That would amount to a 50% year-over-year increase.<\/p>\n

For the first quarter, Alphabet is expected to report earnings per share of $2.62 on revenue of $107 billion, according to Bloomberg analyst consensus estimates. Revenue excluding traffic acquisition costs should hit $92 billion. Alphabet saw earnings per share of $2.81 and revenue of $90.23 billion in the same period last year.<\/p>\n

Google Advertising revenue is expected to top out at $76.2 billion, a 13.9% year-over-year increase. YouTube advertising revenue is expected to come in at $9.96 billion.<\/p>\n

Capital expenditures are also expected to balloon in the quarter. Wall Street is expecting $36.39 billion in spending for the period, a dramatic 111% year-over-year jump.<\/p>\n

Alphabet\u2019s earnings come after the company announced a number of major AI moves during its Google Cloud Next 2026 conference last week, including two new AI chips: the TPU 8t and TPU 8i.<\/p>\n

It also follows an announcement earlier this month that the company entered into an agreement with Anthropic (ANTH.PVT<\/a>) and Broadcom (AVGO<\/a>) to provide the AI startup with multiple gigawatts of TPU capacity, with the first raft of processors coming online next year.<\/p>\n

The chip moves push Google further into competition with partners Nvidia (NVDA<\/a>) and AMD (AMD<\/a>).<\/p>\n

In a note to investors, Morgan Stanley analyst Brian Nowak wrote that he hopes to get more color from Alphabet\u2019s leadership about its TPU strategy moving forward, adding that he doesn\u2019t believe the business is priced into the stock and that it could be a significant driver for the company in 2027.<\/p>\n

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