Key Financial Data
- Q1 Total revenue: $109.9 billion (+22% year-over)
- Operating income: $39.7 billion (+30%)
- Net income: $62.6 billion (+81%)
- Google services revenue: $89.6 billion (+16%)
- Google cloud revenue: $20 billion (+63%)
- Google search revenue: $60.4 billion (+19%)
- Google advertising revenue: $77.3 billion (+15%)
- Subscription, devices and platforms revenue: $12.4 billion (+19%)
- YouTube advertising revenue: $9.88 billion (+11%)
- Read more Q1 2026 media earnings coverage
Alphabet, the parent company of Google and YouTube, posted strong earnings for the first quarter (Q1) of the year, with income boosted by a stronger uptake in its Google Gemini product and higher spending against its various ad-supported products.
Revenue increased 22 percent to $109.9 billion during the first three months of 2026, up from $90.2 billion a year earlier. Net income climbed 81 percent to $62.6 billion, while diluted earnings per share (EPS) rose 82 percent to $5.11, the company disclosed on Wednesday.
Operating income increased 30 percent to $39.7 billion, and the company’s operating margin expanded to 36.1 percent, up two percentage points from the same period last year.
In prepared remarks, Alphabet said growth was driven by strength across its core Google Services business and accelerating momentum in Google Cloud, as artificial intelligence investments continue to scale across its product portfolio.
Google Services revenue rose 16 percent to $89.6 billion, with gains led by search and subscription products. Revenue from Google Search and other products increased 19 percent to $60.4 billion, while subscription, platforms and devices revenue climbed 19 percent to $12.4 billion.
YouTube remained a key contributor, with advertising revenue rising 11 percent to $9.9 billion. On a sequential basis, revenue was down nearly 10 percent from the $11 billion that YouTube earned during Q4 2025. YouTube helped drive broader subscription growth, with total paid subscriptions across services like YouTube and Google One reaching 350 million.
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Google Cloud delivered the fastest growth among Alphabet’s business units, with revenue surging 63 percent to $20 billion. The company attributed the gains to increased demand for AI infrastructure and enterprise services tied to its Google Cloud Platform offerings.
Alphabet CEO Sundar Pichai said the company’s investments in artificial intelligence are fueling usage and engagement across its products.
“2026 is off to a terrific start,” Pichai said, noting that AI-powered features in Search are driving higher query volumes and usage. He also pointed to strong adoption of the company’s Gemini AI products and enterprise tools.
Alphabet reported that its Google Network advertising business declined slightly, falling about 4 percent to $7 billion, which demonstrates continued pressure in third-party advertising channels. Traffic acquisition costs, a key expense tied to revenue-sharing agreements, increased to $15.2 billion, up roughly 11 percent compared to last year.
The company’s bottom line was significantly boosted by other income, which totaled $37.7 billion, largely due to unrealized gains on equity investments.
Alphabet also announced a 5 percent increase to its quarterly dividend, raising it to $0.22 per share. It stock price was up 3 percent in after-hours trading.
Alphabet said its Q1 results marked the 11th consecutive quarter of double-digit revenue growth, which the company said was demonstrable in proving that it has the ability to scale its operations at a time when the race for dominance in the artificial intelligence space intensifies.
YouTube also remains a key part of Alphabet’s operations, with its revenue growth outpacing that of Google’s legacy products, including its search engine. YouTube’s revenue growth was boosted not just by advertising, but by subscription uptake as more customers purchase its streaming cable-like replacement, premium YouTube experience, YouTube Music and other products.
