Alphabet reported a 19% rise in first-quarter revenue, ignoring currency moves, to $109.9bn ($107.2bn expected)
The core advertising business, which includes Google Search and YouTube, saw revenue rise by 16% to $77.3bn. Google Cloud revenue increased by 63% to $20.0bn, with cloud backlog nearly doubling quarter-on-quarter to $462bn.
Operating income rose 30% to $39.7bn ($36.2bn expected), supported by strong growth across Google Services and a significant improvement in Google Cloud profitability.
Free cash flow fell 47% to $10.1bn, as higher capital expenditure more than offset stronger operating cash generation. Net cash, including leases, was $36.4bn at quarter-end.
Capital expenditure guidance for 2026 has been increased to between $180-190bn (previously $175-185bn), and 2027 is expected to see a significant increase.
The shares rose 7.2% in after-hours trading.
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