Alphabet (NASDAQ: GOOGL, GOOG) reported $109.9 billion in first-quarter revenue, beating the $107.2 billion estimate. The parent company of Google posted diluted earnings per share of $5.11, up from $2.81 one year earlier. Total revenue rose 22% from $90.234 billion in Q1 2025. Operating income increased 30% to $39.696 billion, and net income jumped 81% to $62.578 billion. Alphabet also raised its quarterly cash dividend by 5% to $0.22.
Google Services revenue increased 16% to $89.637 billion, with Google Search rising 19% to $60.399 billion. YouTube ads brought in $9.883 billion, up 11%. Google Cloud revenue surged 63% to $20.028 billion, with the cloud backlog nearly doubling quarter over quarter to more than $460 billion.
Microsoft shares fell 2% in after-market trading despite posting stronger-than-expected results. Total revenue rose 18% year-over-year to $82.9 billion, beating estimates of $81.4 billion. Adjusted earnings per share came in at $4.27. Azure posted 40% revenue growth. Microsoft's AI business annual revenue run rate surpassed $37 billion, up 123% year-over-year.
Capital expenditures came in at $31.9 billion, below estimates. The company is expanding its AI model options, integrating Anthropic's technology alongside its partnership with OpenAI. On Monday, Microsoft announced its largest-ever Copilot rollout, covering approximately 743,000 Accenture employees.
