Alphabet Inc. (GOOG, GOOGL) Q1 2026 Financial Results Summary

MOUNTAIN VIEW, Calif. – April 29, 2026 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended March 31, 2026. Below is a summary of the financial highlights and performance metrics:

Financial Highlights

• Total Revenues
  • Consolidated Alphabet revenues: $109.9 billion, up 22% compared to $90.2 billion in Q1 2025.
    • Constant currency growth: 19% year over year.
• Google Services Revenues
  • Total Google Services revenues: $89.6 billion, an increase of 16% from $77.3 billion in Q1 2025.
    • Google Search & other: $60.4 billion, 19% growth.
    • Google subscriptions, platforms, and devices: $12.4 billion, 19% growth.
    • YouTube ads: $9.9 billion, 11% growth.
• Google Cloud Revenues
  • Revenues reached $20 billion, representing a significant 63% growth compared to $12.3 billion in Q1 2025.
• Operating Income and Margin
  • Consolidated operating income increased by 30% to $39.7 billion from $30.6 billion in Q1 2025.
  • Operating margin improved 2 percentage points to 36.1%.
• Other Income
  • Reported a net gain of $37.7 billion, mainly due to unrealized gains on non-marketable equity securities.
• Net Income and Earnings Per Share (EPS)
  • Net income surged 81% to $62.6 billion, up from $34.5 billion in the prior year.
  • EPS rose 82% to $5.11 from $2.81 in Q1 2025.

Shareholder Returns

• Dividend Declaration
  • A quarterly cash dividend of $0.22 per share was declared, marking a 5% increase from the previous quarterly dividend of $0.21. The dividend is payable on June 15, 2026, to stockholders of record as of June 8, 2026.

Segment Operating Results

• Breakdown by Segment
  • Google Services: Operating income increased to $40.6 billion from $32.7 billion.
  • Google Cloud: Operating income grew significantly to $6.6 billion, up from $2.2 billion.
  • Other Bets: Reported an operating loss of $2.1 billion, compared to a $1.2 billion loss in Q1 2025.

Employment and Operating Metrics

• Number of Employees
  • Increased to 194,668, up from 185,719 year over year.

Cash Flow

• Net Cash Provided by Operating Activities
  • Increased to $45.8 billion, compared to $36.2 billion in Q1 2025.
• Investing Activities
  • Net cash used in investing activities totaled $63.4 billion, compared to $16.2 billion in Q1 2025.
• Financing Activities
  • Net cash provided by financing activities was $25.1 billion, significantly improving from net cash used of $20.2 billion in Q1 2025.

Additional Insights

• AI and Cloud Investments
  • CEO Sundar Pichai emphasized that investments in AI have driven significant growth across the company's sectors, particularly in search and Google Cloud services.
  • The company's backlog for Google Cloud services nearly doubled quarter on quarter to exceed $460 billion.

Conclusion

Alphabet's Q1 2026 results display robust growth across all segments, with particularly outstanding performance in Google Cloud and AI-driven services. The declared dividend increase reflects confidence in financial health and a commitment to returning value to shareholders.

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts, unaudited)

Note: All amounts are in thousands.

Quarter Ended March 31,	2025	2026
Revenues	$ 90,234	$ 109,896
Costs and expenses:
Cost of revenues	36,361	41,271
Research and development	13,556	17,032
Sales and marketing	6,172	7,606
General and administrative	3,539	4,291
Total costs and expenses	59,628	70,200
Income from operations	30,606	39,696
Other income (expense), net	11,183	37,716
Income before income taxes	41,789	77,412
Provision for income taxes	7,249	14,834
Net income	$ 34,540	$ 62,578
Basic net income per share	$ 2.84	$ 5.17
Diluted net income per share	$ 2.81	$ 5.11
Number of shares used in basic net income per share calculation	12,183	12,099
Number of shares used in diluted net income per share calculation	12,291	12,238

CONSOLIDATED BALANCE SHEETS

(In millions, except par value per share amounts)

Note: All amounts are in millions.

	As of December 31, 2025	As of March 31, 2026
Assets
Current assets:
Cash and cash equivalents	$ 30,708	$ 38,063
Marketable securities	96,135	88,777
Total cash, cash equivalents, and marketable securities	126,843	126,840
Accounts receivable, net	62,886	62,999
Other current assets	16,309	23,914
Total current assets	206,038	213,753
Non-marketable securities	68,687	106,946
Deferred income taxes	9,113	1,995
Property and equipment, net	246,597	281,020
Operating lease assets	15,221	15,509
Goodwill	33,380	57,774
Intangible assets, net	1,283	9,444
Other non-current assets	14,962	17,478
Total assets	$ 595,281	$ 703,919
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 12,200	$ 16,852
Accrued compensation and benefits	17,546	13,947
Accrued expenses and other current liabilities	55,557	63,019
Accrued revenue share	10,864	10,208
Deferred revenue	6,578	7,162
Total current liabilities	102,745	111,188
Long-term debt	46,547	77,501
Income taxes payable, non-current	9,531	12,457
Operating lease liabilities	12,744	12,983
Other long-term liabilities	8,449	11,044
Total liabilities	180,016	225,173
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no shares issued and outstanding	0	0
Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share:
300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,088 (Class A 5,822, Class B 837, Class C 5,429) and 12,116 (Class A 5,824, Class B 836, Class C 5,456) shares issued and outstanding	93,126	96,902
Accumulated other comprehensive income (loss)	-1,916	-2,180
Retained earnings	324,055	384,024
Total stockholders’ equity	415,265	478,746
Total liabilities and stockholders’ equity	$ 595,281	$ 703,919

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