Alphabet revenue tops expectations on best-ever quarter for cloud unit
Alphabet's revenue rose 22% to $109.9 billion in the first quarter, exceeding Wall Street estimates, driven by a 63% growth in Google Cloud revenue. Alphabet's cloud unit achieved its best quarter since 2020, with operating income tripling to $6.6 billion.
Alphabet's quarterly revenue surpassed expectations, driven by strong growth in its cloud unit. Revenue rose 22% to $109.9 billion, exceeding the estimated $107.2 billion. Google Cloud revenue grew 63% to $20 billion, outpacing analysts' average estimate of a 50.1% increase. The cloud unit's operating income tripled to $6.6 billion from $2.2 billion a year earlier. Alphabet's CEO, Sundar Pichai, announced that the company began selling its TPU chips directly to customers, a move that will drive growth for Google Cloud. The company's capital expenditure projection for 2026 was increased to between $180 billion and $190 billion.
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