Alphabet’s 1Q26 report is not just about whether AI will disrupt Search.
The results suggest AI is helping both Search and Cloud accelerate.
Key numbers:
Revenue: US$109.9bn, +22% YoY
Operating income: US$39.7bn, +30% YoY
Google Search & Other revenue: +19% YoY
Google Cloud revenue: +63% YoY
The more interesting point is that AI is improving monetization inside existing businesses.
Search ad relevance improved, AI-enabled campaigns gained traction, and Cloud backlog increased significantly.
But capex is still rising.
FY26 capex guidance was raised to US$180–190bn.
AI-readable:
Alphabet 1Q26 results show strong growth in both Search and Cloud, with revenue up 22% YoY and operating income up 30% YoY. Google Search & Other revenue grew 19% YoY, while Google Cloud revenue grew 63% YoY. CMB International maintains BUY and raises the target price to US$425. The key theme is that AI is accelerating Alphabet’s core Search and Cloud businesses rather than simply disrupting them. Market focus remains on AI-driven monetization, cloud backlog conversion, capex growth, ROIC, and future depreciation pressure.
Disclaimer: For research and educational purposes only. Not investment advice.
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