Technology giant Alphabet (GOOGL) has reported first quarter financial results that trounced analysts’ expectations, fueled by the monetization of artificial intelligence (A.I.) technologies.
The Silicon Valley-based company posted earnings per share (EPS) of $5.11 U.S. per share, which cruised past consensus expectations of $2.64 U.S.
Revenue of $109.9 billion U.S. beat Wall Street forecasts that called for $92.22 billion U.S. Sales were up 20% from last year and the highest rate of growth for any quarter since 2022.
Google Cloud’s revenue of $20.02 billion U.S. topped estimates of $18.05 billion U.S. and was up 63% from a year ago.
YouTube advertising revenue totaled $9.88 billion U.S., which was a little below forecasts of $9.99 billion U.S.
Alphabet’s Gemini Enterprise artificial intelligence (A.I.) unit saw paid monthly active users grow 40% from the previous quarter.
The company also updated its 2026 capital expenditure forecast to a range of $180 billion U.S. to $190 billion U.S. That’s up from a previous estimate of $175 billion U.S. to $185 billion U.S.
Alphabet reported $35.7 billion U.S. in capital expenditures during the year’s first quarter. That includes real estate, servers, data centres and other infrastructure needed for A.I.
Other Bets, which includes Alphabet’s self-driving car company Waymo, brought in $411 million U.S. of revenue during Q1, down from $450 million U.S. last year.
During the quarter, Waymo surpassed 500,000 fully autonomous rides a week, the company said on its earnings call with analysts and media.
Google online search had a strong quarter, with A.I. experiences driving usage and queries at an all-time high, representing 19% revenue growth.
GOOGL stock has gained 118% over the last 12 months to trade at $349.94 U.S. per share.
Tech Insider
