Alphabet is experiencing impressive growth as it approaches a record high, following strong earnings that signal positive momentum in the market. During yesterday’s trading, the stock peaked at $355.79, marking its highest intraday level to date. In early trading today, Alphabet’s shares rose over 8%, positioning the stock on the brink of confirming a new all-time high if this trend continues through the trading day.
The parent company of Google and YouTube began 2026 with a robust financial performance, reporting first-quarter revenue of $109.9 billion, which represents a 22% increase year-over-year. This achievement highlights Alphabet's sustained success, marking the 11th consecutive quarter of double-digit growth. The net income for this quarter amounted to $62.6 billion, nearly doubling the $34.5 billion reported in the same period last year.
#How is Google's Cloud Division Performing?
Google Cloud has achieved a significant milestone, crossing the $20 billion mark in quarterly revenue for the first time. This figure signifies a remarkable 63% growth compared to the prior year. Operating income for Google Cloud has tripled from $2.2 billion to $6.6 billion, illustrating the division’s accelerating profitability. Furthermore, the backlog of signed contracts awaiting revenue conversion has nearly doubled quarter-over-quarter, now standing at $462 billion, with approximately half predicted to convert within two years.
#What are the Advertising and Subscription Trends?
In terms of advertising revenue, Google Search has seen a notable increase of 19%, reaching $60.4 billion. Meanwhile, YouTube's ad revenue has risen by 11% to $9.9 billion. The subscription business, which includes services such as YouTube Premium and Google One, has achieved a total of 350 million paid subscribers, gaining 25 million new subscribers in just the last quarter.
#How is Gemini Impacting the Market?
Gemini, Alphabet's model, now processes an impressive 16 billion tokens per minute through its direct API usage. This represents a 60% increase since the previous quarter. Additionally, Gemini Enterprise has seen a 40% increase in paid monthly active users, demonstrating strong market adoption. Gemini’s share of the AI model market has also increased, climbing from 14% in October 2025 to 24% by February 2026, reflecting its growing influence.
#What About Waymo's Recent Achievements?
Waymo, Alphabet’s autonomous driving division, has surpassed 500,000 fully autonomous rides per week. Despite these advancements, the segment reported $2.1 billion in operating losses for the quarter, showcasing the challenges that come with pioneering technology.