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Earnings analysis · 10-Q

GOOG earnings analysis

Filed April 30, 2026 · Our reading of the company's report

The latest report

Alphabet Inc. reported strong Q1 2026 results with revenue of $109.9 billion, beating estimates of $104.1 billion, and an EPS of $5.11, significantly higher than the expected $2.63. The year-over-year revenue growth was…

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Alphabet Inc. reported strong Q1 2026 results with revenue of $109.9 billion, beating estimates of $104.1 billion, and an EPS of $5.11, significantly higher than the expected $2.63. The year-over-year revenue growth was 22%, and the company highlighted a 63% surge in Google Cloud revenue as a key driver for this performance.

Read the original on SEC.gov

Reported figures

Earnings per share
$5.11
Gross margin
59.7%

What stood out

  • Strong Revenue Growth

    Reported revenue of $109.9 billion, up 22% from Q1 2025's $90.23 billion.

  • Significant EPS Beat

    Diluted EPS reached $5.11, up from an estimated $2.63 and significantly higher than the prior year's $2.81.

  • Improved Gross Margin

    Gross margin increased to 59.7% from 59.5% in Q4 2025, reflecting improved operational efficiency.

  • Cloud Segment Surge

    Google Cloud revenue grew by 63% year-over-year, contributing significantly to overall revenue growth.

  • High Free Cash Flow

    Free cash flow for the quarter was $18.95 billion, indicating strong cash generation capability.

  • Investments in AI Paying Off

    Increased focus on AI innovations driving revenue and enhancing product offerings.

What to watch

  • Rising Operating Costs

    Research and development expenses jumped to $17.03 billion from $13.56 billion YOY, representing 16% of revenues.

  • Investment Risk in New Technologies

    Significant capital expansion into AI infrastructure may not yield expected returns, posing financial risk.

  • Market Volatility Risks

    Global economic conditions and regulatory changes may adversely impact spending trends and overall revenue.

Management's outlook

Management expects continued strength driven by AI-led initiatives and cloud services growth.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.