Alphabet $GOOGL reported first-quarter revenue of $109.9 billion, up 22% year over year, as Google Cloud growth accelerated and net income more than doubled from the same period a year ago.

Google Cloud brought in $20.03 billion in revenue for the quarter, up 63% year over year, with operating income rising to $6.6 billion from $2.2 billion in the prior-year period. The company said Cloud backlog almost doubled quarter on quarter to more than $460 billion. The Cloud figure cleared the $18.05 billion that Wall Street had forecast, a threshold tracked by CNBC.

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The $109.9 billion top line surpassed the $107.2 billion consensus estimate tracked by CNBC. At $5.11, diluted earnings per share were up 82% compared with the same quarter a year earlier. Net income reached $62.6 billion, though that figure included a $36.9 billion gain on equity securities that the company said added $2.35 to diluted EPS and $28.7 billion to net income.

Google $GOOGL Services — which includes Search, YouTube, and subscriptions — generated $89.6 billion in revenue, up 16%. Search and other revenue rose 19% to $60.4 billion. YouTube advertising revenue came in at $9.9 billion, up 11%. The result fell slightly short of the $9.99 billion that analysts had penciled in, per CNBC.

Consolidated operating income rose 30% to $39.7 billion, with operating margin expanding two percentage points to 36.1%. Capital expenditures totaled $35.7 billion in the quarter.

"2026 is off to a terrific start," CEO Sundar Pichai said in a statement. "Our AI investments and full stack approach are lighting up every part of the business."

Alphabet also said total paid subscriptions reached 350 million, and that its Gemini Enterprise product saw 40% quarter-on-quarter growth in paid monthly active users. Waymo surpassed 500,000 fully autonomous rides per week, the company said.

The quarter marks a significant acceleration from Alphabet's fourth quarter, when Google Cloud revenue grew 48% to $17.7 billion and the company announced a 2026 capital spending plan that unsettled investors. Cloud operating income in that quarter surpassed $5.3 billion, pushing operating margin above 30%. Search also held up in that period, with revenue rising 17%, while YouTube ad revenue grew 9% to $11.4 billion.

Alphabet increased its quarterly dividend 5% to $0.22 per share and issued senior unsecured notes for net proceeds of $31.1 billion during the quarter.

Google Cloud revenue grew 63% as Alphabet beat first-quarter expectations

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