Google's parent company Alphabet Inc. (GOOGL) saw its stock surge over 26% in April 2026, significantly outperforming the S&P 500, ahead of its April 29 earnings report. Wall Street expects adjusted earnings per share of $2.62 and quarterly revenue between $106 billion and $107 billion, representing 18% to 20% year-over-year growth. Analysts from Citi raised their price target to $405, citing strong user engagement with Gemini and cloud strength, while Evercore ISI’s Mark Mahaney set a $400 target, highlighting solid demand trends and continued strength in the cloud division.
Google Cloud revenue rose 48% year over year to $17.7 billion in Q4 2025, with the cloud backlog increasing 55% sequentially to $240 billion. CEO Sundar Pichai attributed this growth to demand for in-house chips and Gemini 3 models driving enterprise adoption. Alphabet plans capital expenditures between $175 billion and $185 billion in 2026, nearly double 2025 spending, focused on data centers and chip capacity to support AI expansion. The company ended 2025 with $127 billion in cash and $46 billion in debt.
Adding to the positive momentum, Google officially broke ground on April 28 on its largest AI hub outside the U.S. in Visakhapatnam, India. This $15 billion investment will include a gigawatt-scale data center designed to power advanced AI workloads for core products like Gemini and Search, integrated with clean energy infrastructure. The state of Andhra Pradesh provided incentives worth approximately 220 billion rupees ($2.33 billion), including land concessions and electricity pricing benefits. Google is partnering with AdaniConneX for facility development and Bharti Airtel for subsea cable and fiber expansion. This initiative aligns with India’s national AI Mission and is supported by broader industry trends, with global AI infrastructure spending expected to exceed $1 trillion.
