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Alphabet beats on revenue, with cloud booming 63% and topping $20 billion
Google Cloud’s growth was driven by AI demand and infrastructure sales, while operating income tripled to $6.6 billion, Alphabet said.
- Google Cloud revenue surged 63% to $20 billion in the first quarter of 2026, marking the strongest growth rate since the unit began reporting segment revenue in 2020.
- Alphabet CEO Sundar Pichai attributed this growth to "strong demand" for Gemini Enterprise and AI infrastructure, noting the company began selling TPU chips directly to customers for the first time.
- Google Cloud's backlog doubled to $462 billion during the quarter, though the company expects to work through 50% over the next 24 months despite compute constraints.
- Alphabet shares rose more than 7% in extended trading, outperforming Amazon and Meta Platforms, as analysts noted Google is capturing market share across the cloud sector.
- Major cloud providers plan to spend over $600 billion this year to expand AI capacity, while Alphabet maintains a robust planning framework to capitalize on "extraordinary opportunities" despite compute bottlenecks.
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Wall Street Lifts Alphabet Price Targets After Cloud's 63% Growth: Is the AI Stack Story Just Getting Started?
Wall Street is responding to Alphabet‘s (NASDAQ:GOOGL | GOOGL Price Prediction) blowout Q1 2026 report with a synchronized wave of price target hikes. At least six firms raised targets on April 30, with Susquehanna lifting to $460 from $400, Canaccord to $450 from $415, and TD Cowen to $450 from $375, calling the cloud number ... Wall Street Lifts Alphabet Price Targets After Cloud’s 63% Growth: Is the AI Stack Story Just Getting Started?
·New York, United States
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Total News Sources37
Leaning Left3Leaning Right4Center11Last UpdatedBias Distribution61% Center
Bias Distribution
- 61% of the sources are Center
61% Center
L 17%
C 61%
R 22%
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