"Google Search & other revenue hit $60.40 billion, up 19% year over year, with management citing queries at all-time highs as AI Overviews and AI Mode pulled users deeper into the product."
"Capital expenditures hit $35.67 billion, up 107% year over year, and free cash flow fell to $10.12 billion, down 47%. Net income was flattered by $36.91 billion in unrealized equity gains."
"You should look at Search revenue. A 19% growth print on a $60 billion line item is the quiet breakthrough of the quarter."
Alphabet reported impressive Q1 FY2026 results, with EPS at $5.11, surpassing the $2.63 consensus. Revenue reached $109.90 billion, up 21.8% year over year. Google Search revenue hit $60.40 billion, a 19% increase, countering fears that AI would diminish its value. Google Cloud also performed well, growing 63%. However, capital expenditures rose significantly, and free cash flow decreased. Despite these concerns, the strong performance in Search is a critical narrative shift for the company.
Read at 24/7 Wall St.
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