Artificial intelligence (AI) is fuelling a sharp rise in Google Search usage and query volumes, helping power a strong start to 2026 for parent company Alphabet.
The tech giant has reported a 22% year-on-year increase in first-quarter revenue to $109.9 billion, marking its 11th consecutive quarter of double-digit growth, as AI-led features boosted engagement across its core products.
CEO Sundar Pichai says: “2026 is off to a terrific start. Our AI investments and full-stack approach are lighting up every part of the business. Search had a strong quarter, with AI experiences driving usage, queries at an all-time high and 19% revenue growth.”
He adds that Google Cloud revenue grew 63% with backlog nearly doubling quarter-on-quarter to over $460 billion.
“This was our strongest quarter ever for our consumer AI plans, driven by the Gemini App. Overall, the number of paid subscriptions has now reached 350 million, with YouTube and Google One being the key drivers.
According to Pichai, Gemini Enterprise had momentum, with 40% quarter-on-quarter growth in paid monthly active users.
“And, finally, I’m pleased to see Waymo surpass 500 000 fully autonomous rides a week. These outstanding results are built on our differentiated, full-stack approach.
“Our first-party models, like Gemini, are now processing more than 16 billion tokens per minute via direct API use by our customers, up 60% from last quarter. It’s really exciting to see how our AI investments are delivering value for our users, customers and business,” says Pichai.
Revenue from Google Services, which includes Search, YouTube and Android, rose 16% to $89.6 billion.
Alphabet points out that growth was led by Search and other services, alongside subscriptions, platforms and devices, while YouTube advertising posted gains of 11%.
It notes that Google Cloud was the standout performer, with revenue surging 63% to $20 billion, driven by enterprise demand for AI solutions and infrastructure.
Net income jumped 81%, lifting earnings per share to $5.11, while operating income rose 30%, expanding margins to 36.1%.
Other income added a net gain of $37.7 billion, largely due to unrealised gains on non-marketable equity investments.
Alphabet also declared a quarterly dividend of $0.22 per share, up 5% from the previous quarter, payable on 15 June.
Beyond its core businesses, the company points to growing traction in its AI ecosystem, with paid subscriptions reaching 350 million and continued momentum in enterprise AI adoption.
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