{"id":22367,"date":"2026-04-30T01:19:29","date_gmt":"2026-04-30T01:19:29","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/22367\/"},"modified":"2026-04-30T01:19:29","modified_gmt":"2026-04-30T01:19:29","slug":"alphabets-first-quarter-profit-soars-with-googles-big-ai-bets","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/22367\/","title":{"rendered":"Alphabet’s first-quarter profit soars with Google’s big AI bets"},"content":{"rendered":"

Google\u2019s transition into the era of artificial intelligence<\/a> continued to pay off for its corporate parent, Alphabet Inc.<\/a>, which on Wednesday announced another quarter of the stellar growth that helped to more than double its already lofty market value during the past year.<\/p>\n

Alphabet earned $62.6 billion, or $5.11 per share, during the January-March period, an 81% increase from the same time last year. Revenue climbed 22% from last year to $109.9 billion. Both numbers easily surpassed the analyst projections that steer investors.<\/p>\n

Alphabet\u2019s stock price rose more than 6% in extended trading after the numbers came out, setting up the shares to hit a new high during Thursday\u2019s regular session. The company\u2019s market value currently stands at $4.2 trillion, up from $1.9 trillion just a year ago. If the stock trades in a similar trajectory Thursday, Alphabet\u2019s market value could approach $4.5 trillion while creating more than $250 billion in additional shareholder wealth in a single day.<\/p>\n

The stock market gains that Alphabet is producing are not being matched by other big AI spenders such as Microsoft and Facebook parent Meta Platforms, whose stock price plunged by about 6% in extended trading after disclosing an investment strategy<\/a> being second guessed by investors. Meanwhile, Microsoft\u2019s shares also dipped, despite posting quarterly results that topped analyst forecasts. <\/p>\n

Alphabet\u2019s performance in the past quarter CEO Sundar Pichai<\/a> to celebrate the huge bets that the company has been placing on AI technology during the past three years. Those investments, Pichai said, \u201care lighting up every part of the business.\u201d<\/p>\n

As usual, digital ads fueled by Google\u2019s dominant search engine propelled the growth as revenue from those operations shot up 16% from last year\u2019s first quarter. It marked the fourth straight quarter that Google\u2019s ad sales increased by more than 10% from the previous year.<\/p>\n

Google\u2019s fastest growing division remains its Cloud division<\/a>, which has been riding the AI boom to sell more products and services to corporate customers and government agencies such as the deal that it just struck with the U.S. military. Google Cloud\u2019s revenue surged 63% from last year to $20 billion.<\/p>\n

That growth is a sign that Alphabet\u2019s spending spree on AI is producing dividends so far, although investors continue to worry that the Mountain View, California, company and its Big Tech peers are pouring too much money into a still-nascent and unproven technology.<\/p>\n

Alphabet, though, is betting that it\u2019s better to overspend on AI than being too stingy and risk behind left behind.<\/p>\n

In a previous quarterly update released in February<\/a>, Alphabet disclosed that it\u2019s earmarking $175 billion to $185 billion for capital expenditures this year that will largely be devoted to building AI data centers and other tools tied to the technology. <\/p>\n

In a reflection of management\u2019s confidence in its strategy, Alphabet\u2019s top finance executive Anat Ashkenazi told analysts on a conference call that this year\u2019s capital expenditures may climb as high as $190 billion. And even if the spending runs that high, Askkenazi said it will \u201csignificantly increase\u201d again next year.<\/p>\n

All of that would be on top of $91 billion in capital expenditures during 2025.<\/p>\n

\u201cThe key message is that Alphabet is no longer asking investors to underwrite AI spending on faith,\u201d said Investing.com analyst Thomas Monteiro.<\/p>\n","protected":false},"excerpt":{"rendered":"Google\u2019s transition into the era of artificial intelligence continued to pay off for its corporate parent, Alphabet Inc.,…\n","protected":false},"author":2,"featured_media":22368,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[24,1483,25,309,970,132,1429,829,963,1123,146,9321,141,134,15438],"class_list":{"0":"post-22367","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-google","8":"tag-ai","9":"tag-alphabet","10":"tag-artificial-intelligence","11":"tag-business","12":"tag-california","13":"tag-google","14":"tag-google-ai","15":"tag-inc","16":"tag-information-technology","17":"tag-meta-platforms","18":"tag-microsoft-corp","19":"tag-stocks-and-bonds","20":"tag-sundar-pichai","21":"tag-technology","22":"tag-thomas-monteiro"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/22367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=22367"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/22367\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/22368"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=22367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=22367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=22367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}