Alphabet Inc., the parent company of Google, reported first-quarter revenue of $94.7 billion for Q1 2026, exceeding analysts' expectations of $91.6 billion. The company's earnings per share reached $5.11, nearly double Wall Street's projections. Shares rose 7.6% to $376.35 in early trading following the announcement. A significant driver of this growth was Google Cloud, which reported a 63% increase in revenue to $20 billion, fueled by demand for AI software and infrastructure. CEO Sundar Pichai noted that search queries hit an all-time high after integrating AI tools, countering concerns that AI would undermine traditional search. Alphabet plans to increase its capital expenditures to $190 billion, up from a previous estimate of $185 billion, to capitalize on AI opportunities. The cloud unit's backlog nearly doubled to over $460 billion, indicating strong future demand. Additionally, Google will raise its quarterly dividend by 5% to 22 cents. The company is also enhancing its AI offerings, with the Gemini chatbot app gaining traction among users, boasting 750 million users by the end of 2025.