Google’s Q1 earnings beat estimates with $109.9B revenue, driven by 63% cloud growth and AI monetization in search.
Google reported Q1 revenue of $109.9 billion, up 22% year-over-year, exceeding expectations with a 94.1% EPS beat. Google Cloud revenue surged 63% to $20.028 billion, while its backlog nearly doubled to $462 billion, signaling strong future demand.
The company’s AI-driven search monetization outperformed forecasts, and Waymo’s autonomous rides surpassed 500,000 per week. Cloud operating margins expanded to 32.9% from 17.8%, reflecting improved profitability.
Analysts project $180B-$190B in infrastructure CapEx by 2026, with AI and cloud growth remaining underpriced by the market. Shares trade at $397.17, with a price target of $473.24, implying 19.15% upside.