dailyloe.com – Alphabet, the parent company of Google, will announce its first quarter earnings on Wednesday. The report will include updates on the Gemini model, Google Cloud revenue, and investment strategies. Investors view Alphabet as a significant player in the AI sector this year.
Over the past six months, Alphabet stock has risen approximately 30%, outperforming Amazon and Microsoft. Amazon’s stock increased by 13%, while Microsoft’s has declined by about 20%. The growth is attributed to the success of Google’s cloud platform and Gemini AI models.
In the fourth quarter, Google Cloud revenue reached $17.66 billion, with projections for the first quarter indicating an increase to $18.4 billion. This represents a 50% increase year-over-year. According to Bloomberg analyst consensus estimates, Alphabet is expected to report earnings per share of $2.62 on revenue of $107 billion.
Last year, during the same quarter, Alphabet reported earnings per share of $2.81 and revenue of $90.23 billion. Google Advertising revenue is anticipated to reach $76.2 billion, marking a 13.9% year-over-year growth. YouTube advertising revenue is expected to be around $9.96 billion.
Capital expenditures for the quarter are projected to be $36.39 billion, reflecting a significant 111% year-over-year increase. This earnings report follows Alphabet’s recent announcements at the Google Cloud Next 2026 conference, where the company introduced two new AI chips: the TPU 8t and TPU 8i.
Additionally, Alphabet recently entered into an agreement with Anthropic and Broadcom to supply the AI startup with substantial TPU capacity, with the first processors expected to be operational next year. These developments position Google in direct competition with Nvidia and AMD.
In a note to investors, Morgan Stanley analyst Brian Nowak expressed anticipation for further insights from Alphabet’s earnings report. The focus will be on how these AI advancements will impact the company’s financial performance moving forward.
