Alphabet, Google’s parent company, earns 81% more in the first quarter and fuels the frenzy over artificial intelligence. The company announced a profit of $62.578 billion (about 58 billion euros at the current exchange rate) in the first quarter of 2026, an 81% increase on a key day for global markets, which are awaiting the business results of the major tech companies to verify whether the rise of artificial intelligence is justified or if it fuels the doubts that have recently surrounded this technology.
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Analysts’ focus is not limited to traditional figures. The market is looking for signals about the profitability of the multi-billion dollar investments in artificial intelligence, which have driven capital expenditure in the sector. Alphabet publishes its accounts alongside Microsoft, Amazon, and Meta Platforms, four companies that account for more than 15% of the value of the S&P 500 and whose performance can set the market’s direction in the short term.
In the case of Alphabet, the company recorded revenues of $109.896 billion, a 22% increase. By business lines, advertising was again the main support. Google Services — which includes the search engine and YouTube — reached $89.637 billion, compared to $77.264 billion a year ago. YouTube generated $9.883 billion.
Meanwhile, Google Cloud remained one of the growth engines, with revenues of $20.028 billion, a 63% increase. The market pays special attention to this division, considered key in the race to lead artificial intelligence infrastructure. Forecasts pointed to year-on-year growth close to 50% in this segment.
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CEO Sundar Pichai stated in a release that the company is seeing “strong momentum across the company driven by artificial intelligence, with the search engine growing strongly, the cloud accelerating, and our investments in models like Gemini generating increasing usage and monetization in the digital ecosystem.”
Beyond Alphabet, the market faces a cascade of results concentrated in just minutes after the close of Wall Street that will set the course of the markets in Thursday’s session. Alphabet shares rise 3.5% in after-hours trading, in an initial reaction to the results, while Nasdaq futures, the US tech index, rise around 0.4%.
Optimism around artificial intelligence has so far allowed markets to ignore other risks, such as geopolitical tensions or the rise in energy prices as a result of the blockade in the Strait of Hormuz. However, doubts are growing about whether the pace of investment, key to sustaining the entire tech ecosystem, will translate into sufficient profits.
