"Alphabet's Q1 2026 results showcased a remarkable EPS of $5.11, far exceeding the consensus estimate of $2.63, driven by $36.91B in unrealized equity gains and a revenue of $109.90B, reflecting a 21.79% year-over-year growth."
"The cloud segment was a standout performer, achieving 63% growth to $20.028B, with a backlog nearly doubling quarter-over-quarter to over $460 billion, indicating strong demand and future potential."
"Despite the positive outlook, risks loom with capital expenditures more than doubling year-over-year to $35.674B, which has led to a 46.63% decline in free cash flow, raising concerns about ROI if AI monetization does not meet expectations."
Alphabet reported a strong Q1 2026, with EPS of $5.11, significantly beating the consensus of $2.63. Revenue reached $109.90B, growing 21.79% year-over-year. The cloud segment saw 63% growth, contributing $20.028B. Analysts are optimistic, with 63 out of 69 ratings being Buy or Strong Buy. The bull case suggests a price target of $533.07 by May 2027. However, risks include increased capital expenditures and declining Google Network revenue, which could impact future returns.
Read at 24/7 Wall St.
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