GOOGL reports Q1 EPS of $5.11, nearly doubling estimates, while cloud backlog reaches $460 billion amid strong growth.
Alphabet’s cloud backlog nearly doubled to $460 billion, while Q1 earnings per share hit $5.11, crushing the $2.63 estimate. The results challenge concerns about an AI talent exodus, with cloud revenue growing 63% and paid subscribers reaching 350 million.
The company’s structural advantages include a merged AI research unit under Demis Hassabis and multi-billion-dollar retention packages for top talent. Despite high-profile departures, Alphabet maintains a compute edge over startups, reinforcing its position in frontier AI model training.
Investors remain cautious over a projected $175 billion CapEx in Q1 2026, which has already contributed to a 47% decline in free cash flow. Berkshire Hathaway recently initiated a stake in Alphabet, citing long-term potential.