Alphabet, Google's parent company, reported strong demand for its cloud services and artificial intelligence solutions, according to Bloomberg.
Strong Earnings Report
The company's revenue for the first quarter reached $94.7 billion, surpassing analysts' expectations of $91.6 billion. Earnings per share were $5.11, well above Wall Street's forecast of $2.62.
Alphabet's shares rose over 6% following the report.
These results alleviated investor concerns about the future of Google's core business—search monetization. Instead of declining, the company is actively transforming this area with AI.
The cloud segment continues to grow rapidly due to demand for AI software and infrastructure. The Gemini app and enterprise tools are gaining popularity, and the number of search queries has reached record levels following the integration of neural networks.
“AI has improved search, not killed it,” said Andrew Rocco, a strategist at Zacks Investment Research.
In 2026, Alphabet plans to invest up to $190 billion in capital expenditures, with even higher spending anticipated in 2027.
“These strong results reinforce our belief in the need to invest in the capital required to further leverage AI opportunities,” stated CFO Anatol Ashkenazi.
Google CEO Sundar Pichai noted that the company has managed to reduce costs associated with processing user queries using large language models (LLMs).
Cloud Figures
Google's cloud division reported revenue of $20 billion, exceeding analysts' expectations of $18.4 billion. It demonstrated “significant acceleration in growth” driven by demand for AI software and infrastructure.
The order backlog nearly doubled compared to the previous quarter, exceeding $460 billion.
“We faced computational capacity constraints. Revenue from cloud services could have been higher if we had met the demand. We are working on resolving this issue and investing in solutions,” Pichai said.
Google plans to offer tensor processing units (TPUs) to some clients for use in their own data centers.
Demand for AI software remains high. The number of active users of Gemini Enterprise with paid subscriptions grew by 40% in the quarter. The Gemini chatbot had 750 million users as of the end of 2025.
New Releases
In addition to the financial report, Google unveiled several new AI products.
Google Photos
The service introduced an AI feature for creating a digital wardrobe, allowing users to design new outfit combinations and try them on virtually.
This tool uses AI to automatically generate a wardrobe copy based on clothing available in the Google Photos library. The app includes a category filter.
Users can share outfit ideas with friends or save them in a digital album, helping them curate outfits for various occasions—travel, events, dates, work, etc.
The update will be released this summer, first on Android and later on iOS.
Google TV
The platform received a suite of AI features based on Gemini and a feed of short videos.
The update focuses on enhanced capabilities of Gemini. The “Create” button provides access to experiments with Nano Banana and Veo. The first model allows users to transform photos using voice commands, while Veo creates videos or animates still images.
Developers are positioning these tools as a new format for shared entertainment in the living room.
The “Photos” app for TVs has also been updated. Gemini's smart search helps quickly find specific images (e.g., from a particular holiday).
The “Remix” feature stylizes photos, while “Dynamic Slideshows” add animations, frames, and color effects. Additionally, a new section titled “Short Videos for You” featuring content from YouTube Shorts will appear on the Google TV home screen.
Document Export in Gemini
The Gemini AI assistant can now generate and download files for Google Docs, Microsoft Word, and Excel.
Supported formats include: .pdf, .docx, .xlsx, .csv, LaTeX, Plain Text (.txt), Rich Text Format (.rtf), and Markdown (.md).
Google Translate
To celebrate the 20th anniversary of the translator, developers introduced a pronunciation practice tool.
In the “Practice” menu, by pressing the “Pronounce” button, the app listens to the user, evaluates their speech, and provides feedback.
Celebrating 20 years of Google Translate and… the launch of a top-requested feature! 🎂
— Nick Fox (@thefox) April 28, 2026
One of the toughest things about speaking a new language is getting the nuances of pronunciation just right. Now, you can get instant feedback with "pronunciation practice,” which uses AI… pic.twitter.com/DdMfiMB9dz
This feature has launched in the U.S. and India, currently supporting English, Spanish, and Hindi.
Additionally, Google is investing up to $40 billion in Anthropic, deepening its partnership with the AI startup.