Alphabet reaps the rewards of its bet on AI and the cloud: its profits soar by 81%.
Alphabet generated revenues of $109.896 billion during the first quarter of the year, 21% more than during the same period in 2025.
The numbers smiled on Alphabet during the first quarter of the year. Google’s parent company’s strong commitment to AI and cloud computing paid off handsomely in terms of revenue and profits for the American multinational in the period between January and March 2026.
The internet giant generated revenues of $109.896 billion during the first quarter of the year, 21% more than during the same period in 2026. Alphabet’s revenue growth was driven by the excellent performance of its advertising division and its cloud business.
Even better was the performance of Google’s parent company in terms of profits, which increased by 81% to $62.578 billion.
«2026 has started off excellently,» stated Sundar Pichai, CEO of Alphabet, yesterday after the presentation of the latest quarterly results from the Mountain View company. «Our investments in AI are strongly driving all areas within our company,» Pichai emphasized.
If we focus specifically on the Google Cloud division, revenue in this area jumped 63% to reach $20 billion. Google Cloud, which competes in the cloud computing sector with Amazon Web Services (AWS) and Microsoft Azure, has secured significant contracts in recent months (from Meta and the cybersecurity company Palo Alto Networks, for example).
The AI boom is benefiting Alphabet
The encouraging figures presented yesterday by Alphabet position the company as one of the major beneficiaries of the surge in spending directly related to AI. At the same time, investors are closely scrutinizing whether the multi-billion dollar investments made by Google and other technology companies are truly translating into sustainable growth.
The AI boom is doubly benefiting Google’s parent company, as its AI offerings are gaining increasing popularity, and the rise of this trendy technology is driving demand for cloud computing services to new heights—an area where Alphabet enjoys a prominent position thanks to Google Cloud.
Alphabet, Microsoft, Amazon, and Meta are expected to collectively spend over $600 billion this year to bolster their efforts in artificial intelligence, a field where competition is intensifying by the minute and where all the players are vying for maximum computing power.
In the last quarter, Alphabet has been pleased not only with Google Cloud but also with its Gemini AI platform, which is gaining significant traction at both the consumer and enterprise levels.
Furthermore, the alliance Google has forged with Apple to bring its AI capabilities to Siri will likely expand the Mountain View company’s dominance in the field of artificial intelligence even further.
Source: www.marketingdirecto.com
