Alphabet Raises 2026 Capex to $180–190B, Posts 22% Q1 Revenue Growth
Alphabet reported Q1 2026 revenue of $109.9 billion, up 22% year-over-year, and EPS surged 82%. It lifted 2026 capital expenditure guidance to $180–190 billion, part of hyperscaler spending of $600–720 billion with 75% funding AI infrastructure.
1. Q1 Financial Results
Alphabet delivered $109.9 billion in Q1 2026 revenue, marking a 22% increase over the prior year. Net income and EPS jumped significantly, driving an 82% surge in per-share earnings compared to Q1 2025.
2. Google Cloud Performance
Google Cloud achieved $20 billion in revenue, rising 63% year-over-year, while operating income tripled to $6.6 billion. The division’s acceleration reflects strong enterprise demand and deeper integration of AI capabilities.
3. Enhanced Capex Guidance
Management raised full-year 2026 capital expenditure guidance to a range of $180–190 billion. This increase positions Alphabet among hyperscalers steering the broader $600–720 billion AI capex wave toward data center and infrastructure builds.
4. AI Infrastructure Implications
Approximately 75% of the elevated capex will fund AI infrastructure, supporting next-generation data centers and semiconductors. This investment is expected to drive sustained demand for high-bandwidth memory and efficiency upgrades.