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Can Strong Search and Cloud Growth Drive GOOGL's Q1 Earnings?
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Key Takeaways
Alphabet's Q1'26 results on April 29 may reflect strong Search ads and Cloud momentum.
The Zacks Consensus Estimate for GOOGL's ad revenues stands is $76.91B (15% Y/Y).
GOOGL is expanding Gemini-powered Search features and adding AI clients via NVIDIA GPU access.
Alphabet’s (GOOGL - Free Report) first-quarter 2026 results, scheduled to be released on April 29, are expected to have benefited from solid momentum in Search and Cloud businesses. The momentum in Search is expected to have driven advertising revenues in the to-be-reported quarter. The Cloud business is riding on strong demand for AI infrastructure and an expanding clientele.
The Zacks Consensus Estimate for Google’s advertising revenues is currently pegged at $76.91 billion, suggesting 15% growth from the figure reported in the year-ago quarter. The consensus mark for Google Cloud revenues is currently pegged at $18.4 billion, indicating 50% growth from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for revenues is currently pegged at $92.22 billion, indicating 20.6% growth from the figure reported in the year-ago quarter.
Alphabet has an impressive earnings surprise history. GOOGL’s earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 20.82%.
Click here to know how Alphabet’s overall first-quarter 2026 results are likely to be.
GOOGL’s Search business is benefiting from AI infusion. Alphabet is leading the search domain with 89.85% market share, followed by Microsoft’s (MSFT - Free Report) Bing, with 5.13% share, Yahoo!’s 1.48%, Yandex’s 1.3%, DuckDuckGo’s 0.75% and Baidu’s 0.53%, per the latest data from StatCounter.
Alphabet has been introducing AI-powered features frequently to boost user engagement of its Search business. The company integrated Gemini 3 directly into AI Mode in Search, which is driving engagement. Alphabet has introduced Personal Intelligence in AI Mode in Search (January 2026) and the Gemini app. GOOGL is now expanding Personal Intelligence in the United States across AI Mode in Search, the Gemini app and Gemini in Chrome. The Zacks Consensus Estimate for Search and other revenues is currently pegged at $59.66 billion, suggesting 17.7% growth over the figure reported in the year-ago quarter.
Meanwhile, Alphabet has been growing rapidly in the booming cloud-computing market. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against the likes of Microsoft Azure and Amazon’s (AMZN - Free Report) Amazon Web Services. According to Synergy Research Group data, Google Cloud, along with Microsoft, is gaining market share, while Amazon continues to lead with a 28% market share in the fourth quarter of 2025. Alphabet and Microsoft had 21% and 14% market share, respectively.
In the Cloud, Alphabet is benefiting from its partnership with NVIDIA (NVDA - Free Report) . Google Cloud was the first cloud provider to offer NVIDIA’s B200 and GB200 Blackwell GPUs and will be offering its next-generation Vera Rubin GPUs. In fact, Alphabet and NVIDIA are collaborating to develop AI tools and transform industries, including healthcare, manufacturing and energy. The completion of the Wiz acquisition strengthens Google Cloud’s security capabilities and positions it more effectively to compete against Amazon’s and Microsoft’s respective cloud platforms.
Alphabet’s expanding AI infrastructure is helping it win enterprise clients. Google Cloud’s prospects remain robust, driven by strong demand for enterprise AI infrastructure, including TPUs (led by seventh-generation Ironwood) and NVIDIA’s latest GPUs, enterprise AI solutions driven by demand for the latest Gemini and other AI models, and other services, including cybersecurity and data analytics.
View the Zacks #1 Rank List
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Can Strong Search and Cloud Growth Drive GOOGL's Q1 Earnings?
Key Takeaways
Alphabet’s (GOOGL - Free Report) first-quarter 2026 results, scheduled to be released on April 29, are expected to have benefited from solid momentum in Search and Cloud businesses. The momentum in Search is expected to have driven advertising revenues in the to-be-reported quarter. The Cloud business is riding on strong demand for AI infrastructure and an expanding clientele.
The Zacks Consensus Estimate for Google’s advertising revenues is currently pegged at $76.91 billion, suggesting 15% growth from the figure reported in the year-ago quarter. The consensus mark for Google Cloud revenues is currently pegged at $18.4 billion, indicating 50% growth from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for revenues is currently pegged at $92.22 billion, indicating 20.6% growth from the figure reported in the year-ago quarter.
Alphabet has an impressive earnings surprise history. GOOGL’s earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 20.82%.
Click here to know how Alphabet’s overall first-quarter 2026 results are likely to be.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. revenue-ttm | Alphabet Inc. Quote
GOOGL’s AI Push Aids Search & Cloud Businesses
GOOGL’s Search business is benefiting from AI infusion. Alphabet is leading the search domain with 89.85% market share, followed by Microsoft’s (MSFT - Free Report) Bing, with 5.13% share, Yahoo!’s 1.48%, Yandex’s 1.3%, DuckDuckGo’s 0.75% and Baidu’s 0.53%, per the latest data from StatCounter.
Alphabet has been introducing AI-powered features frequently to boost user engagement of its Search business. The company integrated Gemini 3 directly into AI Mode in Search, which is driving engagement. Alphabet has introduced Personal Intelligence in AI Mode in Search (January 2026) and the Gemini app. GOOGL is now expanding Personal Intelligence in the United States across AI Mode in Search, the Gemini app and Gemini in Chrome. The Zacks Consensus Estimate for Search and other revenues is currently pegged at $59.66 billion, suggesting 17.7% growth over the figure reported in the year-ago quarter.
Meanwhile, Alphabet has been growing rapidly in the booming cloud-computing market. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against the likes of Microsoft Azure and Amazon’s (AMZN - Free Report) Amazon Web Services. According to Synergy Research Group data, Google Cloud, along with Microsoft, is gaining market share, while Amazon continues to lead with a 28% market share in the fourth quarter of 2025. Alphabet and Microsoft had 21% and 14% market share, respectively.
In the Cloud, Alphabet is benefiting from its partnership with NVIDIA (NVDA - Free Report) . Google Cloud was the first cloud provider to offer NVIDIA’s B200 and GB200 Blackwell GPUs and will be offering its next-generation Vera Rubin GPUs. In fact, Alphabet and NVIDIA are collaborating to develop AI tools and transform industries, including healthcare, manufacturing and energy. The completion of the Wiz acquisition strengthens Google Cloud’s security capabilities and positions it more effectively to compete against Amazon’s and Microsoft’s respective cloud platforms.
Alphabet’s expanding AI infrastructure is helping it win enterprise clients. Google Cloud’s prospects remain robust, driven by strong demand for enterprise AI infrastructure, including TPUs (led by seventh-generation Ironwood) and NVIDIA’s latest GPUs, enterprise AI solutions driven by demand for the latest Gemini and other AI models, and other services, including cybersecurity and data analytics.
Zacks Rank
Alphabet currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.