Alphabet surges past Q1 estimates on cloud and AI growth

Alphabet beat Q1 estimates with $109.9B revenue, driven by Google Cloud’s 63% growth and strong AI demand. Net income rose 81%. Amazon also exceeded expectations, while Meta and Microsoft shares fell.

Alphabet reported Q1 revenue of $109.9 billion, surpassing analyst expectations and marking its fastest growth since 2022. Net income soared 81% to $62.6 billion, with diluted EPS at $5.11. Google Cloud was a major growth driver, posting a 63% annual revenue increase due to strong demand for AI infrastructure and solutions, and now holds a $460 billion backlog. Google Services, including Search and YouTube, also performed well, with advertising revenue reaching $77.3 billion. Alphabet raised its quarterly dividend by 5% to $0.22. The robust results pushed Alphabet shares up by as much as 3.9% after the announcement. Amazon exceeded Q1 expectations with EPS of $2.78 and net sales of $181.5 billion, impacting market sentiment around NVIDIA’s market cap. Meanwhile, Meta and Microsoft reported strong growth but experienced share declines after hours.