Alphabet’s Q1 FY2026 earnings beat estimates for the fourth straight quarter, driven by strong cloud growth and a record backlog.
Alphabet’s Google Cloud revenue surged 63% year-over-year to $20.03 billion in Q1 FY2026, while its backlog nearly doubled to $460 billion. The company reported EPS of $5.11, nearly doubling estimates, marking its fourth consecutive earnings beat.
Operating income rose 30% to $39.70 billion, with a 36.1% operating margin. Full-year FY2025 revenue exceeded $400 billion, supported by 19% growth in Search and $9.88 billion in YouTube ad revenue. Paid subscriptions reached 350 million.
Despite a 47% drop in free cash flow and a CapEx increase to $36 billion, 58 analysts rate GOOG a buy, citing its AI leadership and valuation edge over Microsoft and Amazon.