Google parent set to open at fresh record after blowout Q1 earnings

Alphabet is on track to set a fresh record high as pre-market momentum extends a breakout driven by blockbuster earnings.

The stock hit an intraday peak of $355.79 during yesterday’s session, its highest level to date, before surging over 8% in early trading today, per Yahoo Finance. If sustained throughout regular hours, the move would confirm a new all-time high.

The parent company of Google and YouTube delivered a strong start to 2026, reporting Q1 revenue of $109.9 billion, up 22% year-over-year. This marks the company’s 11th consecutive quarter of double-digit growth. Net income came in at $62.6 billion, nearly double the $34.5 billion a year earlier.

Google Cloud crossed $20 billion in quarterly revenue

The cloud division hit $20 billion in quarterly revenue for the first time, a 63% increase from the prior year. Operating income for the segment tripled from $2.2 billion to $6.6 billion. The backlog (contracts signed but not yet converted to revenue) nearly doubled quarter-over-quarter to $462 billion, with roughly half expected to convert within two years.

Advertising and subscriptions

Google Search revenue grew 19% to $60.4 billion. YouTube ad revenue climbed 11% to $9.9 billion. The subscription business (YouTube Premium, Google One, and related products) reached 350 million total paid subscribers, adding 25 million in the quarter alone.

Gemini usage and market share

Gemini models now process over 16 billion tokens per minute through direct API usage, a 60% increase from the previous quarter. Gemini Enterprise saw 40% quarter-over-quarter growth in paid monthly active users.

Gemini’s share of the AI model market reportedly rose from 14% in October 2025 to 24% by February 2026.

Waymo

Waymo, the autonomous driving subsidiary categorized under “Other Bets,” crossed 500,000 fully autonomous rides per week. The segment posted $2.1B in operating losses for the quarter.