Google Cloud revenue surpassed $20 billion for the first time in Q1 2026, marking a 63% year-over-year increase. Alphabet reported Q1 2026 revenue of $109.9 billion, beating the $107 billion consensus, with EPS of $2.81 against the $2.63 estimate. The company warned that growth was capacity-constrained, as demand for AI solutions outpaced available infrastructure.
Alphabet reported capital expenditures of $35.67 billion for the quarter, slightly below estimates of $36.39 billion. CEO Sundar Pichai attributed the strong performance to strong demand for Gemini Enterprise and AI solutions. “Our AI investments and full stack approach are lighting up every part of the business,” Pichai said, linking gains in Search and Cloud to AI-driven demand. Google Cloud revenue rose 63% to $20 billion, fueled in part by enterprise AI Solutions and enterprise AI Infrastructure.
Despite the record revenue, Pichai acknowledged significant constraints. “Obviously, we are compute constrained in the near-term,” he told analysts. “Our cloud revenue would have been higher if we were able to meet that demand.” The company’s backlog doubled to $462 billion in the quarter, indicating unmet demand. Google expects to work through 50% of this backlog over the next 24 months.
The Big Tech AI spending spree has significant implications for the digital asset sector, particularly for bitcoin miners. Miners, facing a margin squeeze from lower bitcoin prices and increased competition, are increasingly pivoting toward hosting computers for AI as part of their revenue diversification strategy. Bitcoin miners already have data centers ready and powered up to host the massive amount of machines needed for AI computing. AI-linked bitcoin mining stocks with exposure to hyperscaler infrastructure deals include IREN (IREN), TeraWulf (WULF) and Cipher Digital (CIFR).
Other tech giants also reported earnings. Microsoft reported fiscal Q3 2026 revenue of $82.9 billion, beating the $81.4 billion consensus. Satya Nadella noted that the firm's AI business brought in $37 billion, up 123% year-over-year. Amazon reported Q1 2026 revenue of $181.5 billion, beating the $177.2 billion consensus, with AWS revenue coming in at $37.6 billion. Meta reported Q1 2026 revenue of $56.31 billion, beating the $55.5 billion consensus, and raised its full-year capital expenditure outlook to $125–145 billion, up from $115–$135 billion.
