Alphabet Q1 Revenue Jumps 22%, Google Cloud Sales Soar 63%
Alphabet posted Q1 revenue of $109.9 billion, up 22% year-over-year, with Google Cloud generating $20.03 billion in sales, a 63% increase and beating forecasts by nearly $1.6 billion. The company raised its 2026 capital expenditure guidance by $5 billion at both ends to $180 billion–$190 billion and will sell custom TPUs to select customers in their own data centers.
1. Q1 Financial Results
Alphabet reported Q1 2026 revenue of $109.9 billion, a 22% increase from the prior year. Google Cloud revenue reached $20.03 billion, up 63% year-over-year and $1.6 billion above forecasts, driven by accelerating enterprise AI adoption.
2. Capex Guidance Increase
Management raised the full-year 2026 capital expenditure range by $5 billion at both ends to $180 billion–$190 billion and signaled that spending will increase significantly in 2027 to support expanding AI infrastructure.
3. TPU Sales Strategy
Alphabet announced it will begin selling its new TPU 8t and TPU 8i chips to select customers for installation in their own data centers, broadening its addressable market and challenging incumbents in AI chip supply.