"Alphabet's Q1 revenue rose 22% and EPS spiked 81%, easily outpacing analysts' expectations. Capex is set to rise to roughly $185 billion in 2026 to meet unprecedented AI demand."
"Google Cloud revenue growth accelerated to 63%, and its backlog nearly doubled sequentially. CEO Sundar Pichai noted, 'We are compute-constrained in the near term ... our cloud revenue would have been higher if you were able to meet the demand.'"
"The cloud unit's operating margin rose from 18% to 34% year over year, indicating a strong ROI on Alphabet's massive capex outlays."
Alphabet's stock rose 9.96% after Q1 2026 results showed a 22% revenue increase and an 81% EPS spike. The company plans to raise capital expenditures to $185 billion in 2026 to meet AI demand. Google Cloud revenue grew 63%, with operating margins increasing from 18% to 34%. Despite heavy infrastructure spending, the strong growth in Cloud and Search may offset costs. Trading volume was significantly above average, indicating investor interest in Alphabet's performance.
Read at The Motley Fool
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