Alphabet Inc. Q1 FY2026 earnings call

AI investments driving performance across business. Search: AI drives usage, queries at all - time high, AI overviews and mode growing. Cloud: AI solutions are primary growth driver, revenue 63% up, backlog nearly doubled. YouTube: Subscriptions growth, living room viewership high. Other Bets: Waymo expanding operations

Search & Other revenue grew 19%. Cloud revenue grew 63% to over $20 billion, backlog nearly doubled to over $460 billion. Gemini Enterprise had 40% Q - o - Q growth in paid monthly active users. Subscriptions had 350 million paid subscriptions with YouTube and Google One as key drivers. Google Services revenues were $89.6 billion, up 16%. Cloud revenues were $20 billion, up 63%. Google Cloud operating income was $6.6 billion, tripling year - over - year with operating margin 32.9%

Updating full year 2026 CapEx guidance to $180 billion to $190 billion. 2027 CapEx expected to significantly increase. TPU hardware sales to select customers with revenues from agreements to be recognized later this year and mostly in 2027

No detailed discussion of specific risks and operational failures in the transcript

Q: Brian Nowak on Search application of next - gen compute and TPU sales strategy.

A: Sundar Pichai on Search using Gemini models for agentic flows and TPU sales as opportunistic for Google Cloud with ROIC consideration.

Q: Doug Anmuth on CapEx and search queries.

A: Anat Ashkenazi on CapEx to meet demand and Philipp Schindler on search query growth driven by multiple factors and AI - enabled coverage upside.

Q: Eric Sheridan on cloud backlog and UCP.

A: Sundar Pichai on cloud infrastructure advantage and Philipp Schindler on UCP for agentic shopping.

Q: Ross Sandler on AdWords transition.

A: Philipp Schindler on user experience focus.

Q: Michael Nathanson on capacity allocation and Gemini app ads.

A: Sundar Pichai on R&D - driven capacity allocation and Philipp Schindler on user - first Gemini app monetization.

Q: Ron Josey on cloud margin expansion.

A: Anat Ashkenazi on top - line growth and efficient operation driving margin.

Q: Ken Gawrelski on TPU sales and backlog.

A: Sundar Pichai and Anat Ashkenazi on TPU demand and backlog breakdown.

Q: Justin Post on TPU sales and big AI deal margins.

A: Sundar Pichai and Anat Ashkenazi on TPU demand and no specific comment on big deal margins