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<Research> Citi: Alphabet Inc. (GOOGL.US) 1Q26 Results Beat; Cloud Revenue Growth Accelerates to Over 63%
Recommend 7 Positive 6 Negative 2 |
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After Alphabet Inc. (GOOGL.US) announced its 1Q26 results, its share price jumped 7.1% in after-hours trading to USD371.8. Citi said in a report that Alphabet Inc. delivered better-than-expected results in 1Q26, mainly driven by growth in Search and Cloud revenue. Total revenue reached USD109.9 billion (up 19% YoY, excluding currency impact), of which Search revenue increased 19.1% YoY, while Cloud revenue growth accelerated to 63.4% YoY. Operating income was USD39.7 billion (margin of 36.1%), 10% above market consensus. Google Services gross margin expanded 300 bps YoY, and Google Cloud gross margin expanded 1,510 bps YoY. GAAP EPS was USD5.11, significantly higher than the consensus of USD2.63. Citi noted that revenue of USD109.9 billion in 1Q26 was about 3% above consensus, while total operating income of USD39.7 billion exceeded consensus by about 10%. Google Search outperformed expectations, indicating healthy online advertising demand. YouTube advertising revenue rose 10.7% YoY to USD9.9 billion, 1% below consensus. Google Services revenue increased 16% YoY to USD89.6 billion, 2% above consensus. Citi added that Google Cloud revenue reached USD20 billion, up 63.4% YoY, 11% above consensus and accelerating from 48% growth in 4Q last year. Cloud operating income was USD6.6 billion (margin of 32.9%), exceeding market forecasts of USD4.8 billion. The broker maintained its Buy rating and TP of USD405 on Alphabet Inc., equivalent to 29x its forecast 2027 GAAP P/E. (wl/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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