Alphabet Q1: Cloud revenue up 63%, paid users hit 350M
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- Alphabet reported Q1 revenue of $109.9 billion, a 22% year‑over‑year increase and above analyst estimates.
- Google Cloud generated $20 billion in revenue, up 63% quarter‑over‑quarter and surpassing expectations, though growth was described as capacity‑constrained.
- Paid subscriptions across Google’s services reached 350 million users in Q1, up 25 million quarter‑over‑quarter, driven by YouTube and Google One.
- Gemini Enterprise saw its paid monthly active users rise 40% quarter‑over‑quarter.
- Google Search ad revenue grew 15.5% and overall search revenue rose 19% in Q1.
- Alphabet raised its 2026 capital‑expenditure guidance to $180 billion‑$190 billion, up from $175 billion‑$185 billion.
Why it matters: Alphabet’s record‑high cloud revenue and expanding paid‑subscriber base boost its top‑line and reassure investors, while the capacity‑constrained growth note warns that scaling may lag demand. The raised capex outlook signals heavier spending on infrastructure, shaping future profit margins and competitive positioning.
