Alphabet (NASDAQ:GOOGL) reported first-quarter revenue that blew past analyst expectations, powered by a resurgence in its Google Cloud division and the continued dominance of its AI-enhanced search business.
The Mountain View, California-based company saw consolidated revenues climb 22% to $109.9 billion for the period ended March 31, 2026, marking its 11th consecutive quarter of double-digit growth.
The standout performer in the results was Google Cloud, which saw revenue accelerate by 63% to reach $20 billion.
The surge underscores the aggressive adoption of enterprise AI solutions and infrastructure, as corporate clients increasingly lean on Alphabet’s proprietary models and hardware to power their own generative AI applications.
Within the Google Services segment, revenue rose 16% to $89.6 billion.
The growth was distributed across the portfolio, with Google Search and "other" categories rising 19%, matching the growth seen in subscriptions, platforms, and devices.
YouTube advertising continued its steady climb, posting an 11% increase.
Profitability metrics also showed sharp improvement.
Consolidated operating income rose 30%, with operating margins expanding to 36.1%.
Net income saw an outsized jump of 81% to $44.1 billion, or $5.11 per share, though this figure was bolstered by a $37.7 billion net gain in "other income," largely attributed to unrealized gains on non-marketable equity securities.
In a move to further reward shareholders, Alphabet’s board announced a 5% increase to its quarterly cash dividend, raising it to $0.22 per share.