Alphabet Q1 2026 earnings preview
Alphabet is set to report its Q1 2026 earnings, with analysts expecting revenue growth but questioning the company's high capital expenditure. The market is looking for confirmation on the sustainability of Google Cloud's growth and the impact of AI on Search revenue.
Alphabet will report its Q1 2026 earnings on April 29. Analysts expect EPS of $2.68 on revenue of $106.88 billion, representing an 18.5% year-on-year revenue growth. The company has guided to a $175-185 billion capex in FY 2026, nearly double the $91.4 billion spent in 2025, to expand AI infrastructure. Google Cloud growth is expected to exceed 50% YoY, driven by enterprise AI adoption. The market needs confirmation that this pace is sustainable and that capex is not running ahead of revenue growth. The earnings call will need to deliver concrete metrics to support the narrative that AI is expanding the addressable market for Search rather than cannibalising it.
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