In Q1 2026, YouTube generated approximately $9.1 billion in ad revenue, marking a 14% year-over-year increase and surpassing Netflix’s $8.16 billion in quarterly sales. Growth was driven by higher cost-per-click rates and expanded advertising inventory across North America and Europe.

This outperformance prompted analysts to raise full-year ad revenue forecasts by an average of 4%, bolstering expectations for Alphabet’s core advertising segment. Strong advertiser demand on YouTube could also support higher valuation multiples for the parent company amid intensifying competition in streaming and digital media.