Alphabet Surges on $20.03 Billion Google Cloud Revenue, Goog Stock Price
Alphabet’s goog stock price rose more than 3% on Wednesday after the company posted first-quarter results that beat Wall Street estimates, led by $20.03 billion in Google Cloud revenue. For investors, the report showed that cloud and AI spending are no longer side notes at Alphabet; they are now helping drive the main numbers that moved the stock.
Alphabet reported $5.11 in earnings per share and $109.9 billion in revenue, topping estimates of $2.62 and $107.1 billion. Last year, the company earned $2.81 per share on $90.23 billion in revenue, so the new quarter shows a much larger business base even before the market digests the latest cloud and AI updates.
Google Cloud Tops $20.03 Billion
$20.03 billion in Google Cloud revenue came in above the $18.4 billion analysts expected, and it was the clearest driver in the quarter. Google advertising revenue also beat projections at $77.2 billion versus $76.2 billion, while YouTube advertising revenue reached $9.88 billion, keeping the core ad business from losing pace as cloud scaled higher.
40% quarter over quarter growth in Gemini Enterprise paid monthly active users added a second AI metric to the report, and Alphabet said its first-party models are processing more than 16 billion tokens per minute, up 60% from the prior quarter. Those figures point to heavier use of Alphabet’s own AI stack across enterprise customers, not just consumer search traffic.
More Than $460 Billion Backlog
More than $460 billion in Google Cloud backlog nearly doubled in the quarter, giving the business a larger pipeline of future work than the revenue line alone shows. Alphabet also announced two new AI chips at Google Cloud Next 2026, TPU 8t and TPU 8i, after entering an agreement earlier this month with Anthropic and Broadcom to provide multiple gigawatts of TPU capacity.
Brian Nowak said in a note to investors that he hopes to get more color from Alphabet’s leadership about its TPU strategy moving forward, that he doesn’t believe the business is priced into the stock, and that it could be a significant driver for the company in 2027. That leaves the next read-through focused on whether the newer chips and capacity deal turn the cloud backlog into faster revenue, or whether the market has already assigned too much value to the AI story after Alphabet’s roughly 30% gain over the past six months.
