Wall St Engine@wallstengine
$GOOGL | Alphabet Q1’26 Earnings Highlights
🔹 EPS: $5.11 (Est. $2.62-$2.73) 🟢; UP +82% YoY
🔹 Revenue: $109.896B (Est. $106.6B-$107.0B) 🟢; UP +22% YoY
🔹 Operating Income: $39.696B (EBIT Est. $36.3B) 🟢; UP +30% YoY
🔹 Google Cloud Revenue: $20.028B (Est. ~$18B) 🟢; UP +63% YoY
🔹 Google Search & Other Growth: +19% YoY (Est. +16%) 🟢
🔹 YouTube Ads Growth: +11% YoY (Est. +11.7%) 🔴
Google Services:
🔹 Revenue: $89.637B; UP +16% YoY
🔹 Operating Income: $40.589B
🔹 Google Advertising Revenue: $77.253B (Est. ~$76B) 🟢
🔹 Google Search & Other: $60.399B; UP +19% YoY
🔹 YouTube Ads: $9.883B; UP +11% YoY
🔹 Google Network: $6.971B
🔹 Subscriptions, Platforms & Devices: $12.384B; UP +19% YoY
Google Cloud:
🔹 Revenue: $20.028B (Est. ~$18B) 🟢; UP +63% YoY
🔹 Operating Income: $6.598B
🔹 Backlog: over $460B
Other Bets:
🔹 Revenue: $411M
🔹 Operating Loss: -$2.100B
🔹 Waymo: surpassed 500,000 fully autonomous rides/week
Alphabet-Level Activities:
🔹 Operating Loss: -$5.391B
🔹 Alphabet-level activities primarily reflect expenses related to shared AI research and development
Other Metrics:
🔹 Total TAC: $15.228B
🔹 Employees: 194,668
🔹 Paid Subscriptions: 350M
🔹 Gemini Enterprise: paid MAUs UP +40% QoQ
🔹 Gemini API Usage: more than 16B tokens/minute; UP +60% QoQ
🔹 Hedging Losses: -$180M
🔹 U.S. Revenue: $53.975B; UP +23% YoY
🔹 EMEA Revenue: $31.468B; UP +21% YoY
🔹 APAC Revenue: $18.288B; UP +23% YoY
🔹 Other Americas Revenue: $6.345B; UP +21% YoY
Financials:
🔹 Operating Margin: 36.1%; expanded by 2 percentage points
🔹 Net Income: $62.578B; UP +81% YoY
🔹 Other Income, Net: $37.716B
🔹 Gain on Equity Securities, Net: $36.915B
🔹 Operating Cash Flow: $45.790B
🔹 CapEx: $35.674B
🔹 Free Cash Flow: $10.116B
🔹 TTM Free Cash Flow: $64.429B
🔹 Cash & Marketable Securities: $126.840B
🔹 Long-Term Debt: $77.501B
Capital Return:
🔹 Dividend: $0.22/share; UP +5% from prior $0.21/share
🔹 Dividend Payable: June 15, 2026
🔹 Stock Repurchases: $0
CEO Sundar Pichai Commentary:
🔸 “2026 is off to a terrific start.”
🔸 “Our AI investments and full stack approach are lighting up every part of the business.”
🔸 “Search had a strong quarter with AI experiences driving usage, queries at an all time high, and 19% revenue growth.”
🔸 “Google Cloud revenues grew 63% with backlog nearly doubling quarter on quarter to over $460 billion.”
🔸 “This was our strongest quarter ever for our consumer AI plans, driven by the Gemini App.”
🔸 “Overall the number of paid subscriptions has now reached 350 million, with YouTube and Google One being the key drivers.”
🔸 “Gemini Enterprise has great momentum with 40% quarter on quarter growth in paid monthly active users.”
🔸 “Waymo surpass 500,000 fully autonomous rides a week.”
🔸 “Our first-party models, like Gemini, are now processing more than 16 billion tokens per minute via direct API use by our customers, up 60% from last quarter.”
