{"id":22393,"date":"2026-04-29T23:01:13","date_gmt":"2026-04-29T23:01:13","guid":{"rendered":"https:\/\/www.europesays.com\/news\/22393\/"},"modified":"2026-04-29T23:01:13","modified_gmt":"2026-04-29T23:01:13","slug":"alphabet-tops-q1-estimates-on-strong-google-cloud-growth","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/news\/22393\/","title":{"rendered":"Alphabet tops Q1 estimates on strong Google Cloud growth"},"content":{"rendered":"\n

Google parent Alphabet (GOOG<\/a>, GOOGL<\/a>) reported its first quarter results on Wednesday, beating on the top and bottom lines, on strong cloud growth.<\/p>\n

The company also said it plans to begin selling its custom TPU chips for select third-party customers to install in their own data centers.<\/p>\n

Alphabet stock rose more than 3% on the news.<\/p>\n

Alphabet stock has climbed roughly 30% over the past 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.<\/p>\n

For the quarter, Alphabet saw earnings per share (EPS) of $5.11 on revenue of $109.9 billion. Wall Street was anticipating EPS of $2.62 on revenue of $107.1 billion, according to Bloomberg analyst consensus estimates.<\/p>\n

Alphabet saw EPS of $2.81 and revenue of $90.23 billion in the same period last year.<\/p>\n

The company also said that it is raising its capital expenditures from between $175 billion and $185 billion up to between $180 billion and $190 billion.<\/p>\n

Google\u2019s cloud revenue came in at $20.03 billion, versus expectations of $18.4 billion.<\/p>\n

The company said Gemini Enterprise grew paid monthly active users 40% quarter over quarter, and that its first-party models are processing more than 16 billion tokens per minute. That\u2019s a 60% increase from the prior quarter.<\/p>\n

Alphabet also noted that its Google Cloud backlog nearly doubled in the quarter to more than $460 billion.<\/p>\n

Google Advertising revenue topped $77.2 billion. Analysts were projecting $76.2 billion. YouTube advertising revenue was $9.88 billion.<\/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 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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