Alphabet’s $460 billion cloud backlog and AI-driven growth contrast with Apple’s $100 billion buyback and iPhone 17 demand surge.
Alphabet’s cloud backlog surged to over $460 billion in Q1 FY2026, nearly doubling quarter-on-quarter, as the company doubled capital expenditures to $36 billion. Revenue reached $109.90 billion, up 21.79% year-over-year, with EPS of $5.11 beating estimates of $2.6327. Cloud revenue grew 63% to $20.03 billion, driven by AI infrastructure investments and Gemini’s 60% quarterly token-processing growth.
Apple reported $111.184 billion in revenue for its March quarter, up 16.6% YoY, with EPS of $2.01 surpassing the $1.94 consensus. iPhone revenue hit $56.99 billion, while Services revenue set a record at $30.98 billion. The company also authorized a $100 billion buyback and raised its dividend by 4%, following an 8th consecutive EPS beat.
Both companies report earnings in late July, with Alphabet on July 22 and Apple on July 30. Alphabet’s AI and cloud momentum contrasts with Apple’s hardware-driven growth and shareholder returns, setting up a high-stakes comparison for investors.