Alphabet Eyes $107B Q1 Revenue, 50% Cloud Growth, 111% Capex Spike
Alphabet is expected to report Q1 earnings of $2.62 per share on $107 billion revenue, compared to $2.81 EPS and $90.23 billion a year earlier. Google Cloud revenue is projected to hit $18.4 billion, a 50% year-over-year surge, while capital expenditures may jump 111% to $36.39 billion.
1. Q1 Financial Forecast
Alphabet is set to report first quarter earnings per share of $2.62 on total revenue of $107 billion, compared with $2.81 EPS and $90.23 billion revenue in the prior-year period. Excluding traffic acquisition costs, revenue is expected to reach $92 billion.
2. Google Cloud Growth
Google Cloud revenue is projected at $18.4 billion for Q1, marking a 50% increase year-over-year. The cloud division has accelerated over recent quarters, delivering $17.66 billion in Q4 revenue and underpinning broader AI investments.
3. Advertising Revenue Expectations
Google’s advertising segment is forecast to generate $76.2 billion, a 13.9% annual increase, while YouTube ads are expected to bring in $9.96 billion. Continued demand for search and video monetization is driving this growth trajectory.
4. Capital Expenditures and AI Investments
Capital spending may surge to $36.39 billion in the quarter, up 111% year-over-year, as Alphabet rolls out its TPU 8t and TPU 8i AI chips. The company has also committed multi-gigawatt TPU capacity to partners like Anthropic and Broadcom, increasing competition with Nvidia and AMD.