Alphabet Inc. (Class A) · Earnings release · 8-K Exhibit 99

EX-99.1 2 googexhibit991q12026.htm EX-99.1 Document Exhibit 99.1 Alphabet Announces First Quarter 2026 Results MOUNTAIN VIEW, Calif. – April 29, 2026 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended March 31, 2026. • Consolidated Alphabet revenues increased 22%, or 19% in constant currency, to $109.9 billion, reflecting strong performance across the business and our 11th consecutive quarter of double-digit growth. • Google Services revenues increased 16% to $89.6 billion, led by 19% growth in Google Search & other, 19% in Google subscriptions, platforms, and devices, and 11% in YouTube ads. • T1Google Cloud saw a meaningful acceleration in growth as revenues increased 63% to $20.0 billion, led by an increase in Google Cloud Platform (GCP) across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services. • T2Consolidated Alphabet operating income increased 30% and operating margin expanded by 2 percentage points to 36.1%. • Other income reflected a net gain of $37.7 billion, primarily the result of net unrealized gains on our non-marketable equity securities. • Net income increased 81% and EPS increased 82% to $5.11. • The company announced a 5% increase to the dividend, resulting in a quarterly cash dividend of $0.22.

Sundar Pichai, CEO of Alphabet and Google, said: "2026 is off to a terrific start. T3Our AI investments and full stack approach are lighting up every part of the business. T4Search had a strong quarter with AI experiences driving usage, queries at an all time high, and 19% revenue growth. Google Cloud revenues grew 63% with backlog nearly doubling quarter on quarter to over $460 billion. T5This was our strongest quarter ever for our consumer AI plans, driven by the Gemini App. T6Overall the number of paid subscriptions has now reached 350 million, with YouTube and Google One being the key drivers. Gemini Enterprise has great momentum with 40% quarter on quarter growth in paid monthly active users.

T7And, 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." Q1 2026 Financial Highlights (unaudited) The following table summarizes our consolidated financial results for the quarter ended March 31, 2025 and 2026 (in millions, except for per share information and percentages). Quarter Ended March 31, 2025 2026 Revenues $ 90,234  $ 109,896  Change in revenues year over year 12  % 22  % Change in constant currency revenues year over year (1) 14  % 19  % Operating income $ 30,606  $ 39,696  Operating margin 34  % 36  % Other income (expense), net $ 11,183  $ 37,716  Net income $ 34,540  $ 62,578  Diluted net income per share $ 2.81  $ 5.11  (1)     Non-GAAP measure.

See the section captioned "Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues" for more details. Q1 2026 Supplemental Information (in millions, except for number of employees; unaudited) Revenues, Traffic Acquisition Costs (TAC), and Number of Employees Quarter Ended March 31, 2025 2026 Google Search & other $ 50,702  $ 60,399  YouTube ads 8,927  9,883  Google Network 7,256  6,971  Google advertising 66,885  77,253  Google subscriptions, platforms, and devices 10,379  12,384  Google Services total 77,264  89,637  Google Cloud 12,260  20,028  Other Bets 450  411  Hedging gains (losses) 260  (180) Total revenues $ 90,234  $ 109,896  Total TAC $ 13,748  $ 15,228  Number of employees 185,719 194,668 Segment Operating Results Quarter Ended March 31, 2025 2026 Operating income (loss): Google Services $ 32,682  $ 40,589  Google Cloud 2,177  6,598  Other Bets (1,226) (2,100) Alphabet-level activities (1) (3,027) (5,391) Total income from operations $ 30,606  $ 39,696  (1) Alphabet-level activities primarily reflect expenses related to our shared AI research and development.

Additional Information Relating to the Quarter Ended March 31, 2026 (unaudited) Issuance of Senior Unsecured Notes T8In the first quarter of 2026, we issued senior unsecured notes for net proceeds of $31.1 billion, to be used for general corporate purposes. Dividend Program On April 27, 2026, Alphabet's Board of Directors declared a quarterly cash dividend of $0.22 per share, representing a 5% increase from the previous quarterly dividend of $0.21 per share. The dividend is payable on June 15, 2026 to stockholders of record for each of the Company's Class A, Class B, and Class C shares as of June 8, 2026. Webcast and Conference Call Information A live audio webcast of our first quarter 2026 earnings release call will be available on YouTube at https://www.youtube.com/watch?v=LPJoiDiVkTI.

The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available at http://abc.xyz/investor. 2 We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor). We also share Google news and product updates on Google's Keyword blog at https://www.blog.google/ and News From Google page on X at x.com/NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest or material to our investors.

Forward-Looki ng Statements This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025 , which are on file with the SEC and are available on our investor relations website at http://abc.xyz/investor and on the SEC website at www.sec.gov.

Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and may be set forth in other reports and filings we make with the SEC. All information provided in this release and in the attachments is as of April 29, 2026 . Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law. About Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: free cash flow; constant currency revenues; and percentage change in constant currency revenues.

The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods.

These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

For more information on these non-GAAP financial measures, please see the sections captioned "Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow" and "Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues" included at the end of this release. Contact Investor relations Media investor-relations@abc.xyz press@abc.xyz 3 Alphabet Inc. CONSOLIDATED BALANCE SHEETS (In millions, except par value per share amounts) As of December 31, 2025 As of March 31, 2026 (unaudited) Assets Current assets: Cash and cash equivalents $ 30,708  $ 38,063  Marketable securities 96,135  88,777  Total cash, cash equivalents, and marketable securities 126,843  126,840  Accounts receivable, net 62,886  62,999  Other current assets 16,309  23,914  Total current assets 206,038  213,753  Non-marketable securities 68,687  106,946  Deferred income taxes 9,113  1,995  Property and equipment, net 246,597  281,020  Operating lease assets 15,221  15,509  Goodwill 33,380  57,774  Intangible assets, net 1,283  9,444  Other non-current assets 14,962  17,478  Total assets $ 595,281  $ 703,919  Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 12,200  $ 16,852  Accrued compensation and benefits 17,546  13,947  Accrued expenses and other current liabilities 55,557  63,019  Accrued revenue share 10,864  10,208  Deferred revenue 6,578  7,162  Total current liabilities 102,745  111,188  Long-term debt 46,547  77,501  Income taxes payable, non-current 9,531  12,457  Operating lease liabilities 12,744  12,983  Other long-term liabilities 8,449  11,044  Total liabilities 180,016  225,173  Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value per share, 100 shares authorized; no shares issued and outstanding 0  0  Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,088 (Class A 5,822, Class B 837, Class C 5,429) and 12,116 (Class A 5,824, Class B 836, Class C 5,456) shares issued and outstanding 93,126  96,902  Accumulated other comprehensive income (loss) (1,916) (2,180) Retained earnings 324,055  384,024  Total stockholders' equity 415,265  478,746  Total liabilities and stockholders' equity $ 595,281  $ 703,919  4 Alphabet Inc.

CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts, unaudited) Quarter Ended March 31, 2025 2026 Revenues $ 90,234  $ 109,896  Costs and expenses: Cost of revenues 36,361  41,271  Research and development 13,556  17,032  Sales and marketing 6,172  7,606  General and administrative 3,539  4,291  Total costs and expenses 59,628  70,200  Income from operations 30,606  39,696  Other income (expense), net 11,183  37,716  Income before income taxes 41,789  77,412  Provision for income taxes 7,249  14,834  Net income $ 34,540  $ 62,578  Basic net income per share $ 2.84  $ 5.17  Diluted net income per share $ 2.81  $ 5.11  Number of shares used in basic net income per share calculation 12,183  12,099  Number of shares used in diluted net income per share calculation 12,291  12,238  5 Alphabet Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited) Quarter Ended March 31, 2025 2026 Operating activities Net income $ 34,540  $ 62,578  Adjustments: Depreciation of property and equipment 4,487  6,482  Stock-based compensation expense 5,516  6,751  Deferred income taxes (1,152) 6,920  Loss (gain) on debt and equity securities, net (9,960) (36,804) Other 481  1,265  Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable, net 1,638  (363) Income taxes, net 7,197  8,101  Other assets (1,288) (3,403) Accounts payable (880) (240) Accrued expenses and other liabilities (4,929) (6,002) Deferred revenue 500  505  Net cash provided by operating activities 36,150  45,790  Investing activities Purchases of property and equipment (17,197) (35,674) Purchases of marketable securities (18,453) (31,041) Maturities and sales of marketable securities 20,345  38,001  Purchases of non-marketable securities (958) (906) Maturities and sales of non-marketable securities 259  848  Acquisitions, net of cash acquired, and purchases of intangible assets (340) (33,621) Other investing activities 150  (996) Net cash used in investing activities (16,194) (63,389) Financing activities Net payments related to stock-based award activities (3,110) (5,483) Repurchases of stock (15,068) 0  Dividend payments (2,434) (2,542) Proceeds from issuance of debt, net of costs 4,532  31,379  Repayments of debt (4,521) (1,477) Proceeds from sale of interest in consolidated entities, net 400  3,200  Net cash provided by (used in) financing activities (20,201) 25,077  Effect of exchange rate changes on cash and cash equivalents 43  (123) Net increase (decrease) in cash and cash equivalents (202) 7,355  Cash and cash equivalents at beginning of period 23,466  30,708  Cash and cash equivalents at end of period $ 23,264  $ 38,063  6 Segment Results The following table presents our segment revenues and operating income (loss) (in millions; unaudited): Quarter Ended March 31, 2025 2026 Revenues: Google Services $ 77,264  $ 89,637  Google Cloud 12,260  20,028  Other Bets 450  411  Hedging gains (losses) 260  (180) Total revenues $ 90,234  $ 109,896  Operating income (loss): Google Services $ 32,682  $ 40,589  Google Cloud 2,177  6,598  Other Bets (1,226) (2,100) Alphabet-level activities (3,027) (5,391) Total income from operations $ 30,606  $ 39,696  We report our segment results as Google Services, Google Cloud, and Other Bets: • Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube.

Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and devices. • Google Cloud includes infrastructure and platform services, applications, and other services for enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services. • Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of autonomous transportation services and internet services.

Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include: • certain AI-focused shared research and development activities, including employee compensation expenses and technical infrastructure usage costs associated with the development of our general AI models; • corporate initiatives such as our philanthropic activities; and • corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with employee severance and office space reductions are also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments. 7 Other Income (Expense), Net The following table presents our other income (expense), net (in millions; unaudited): Quarter Ended March 31, 2025 2026 Interest income $ 1,001  $ 1,381  Interest expense (34) (533) Foreign currency exchange gain (loss), net (106) 146  Gain (loss) on debt securities, net 202  (111) Gain (loss) on equity securities, net (1) 9,758  36,915  Income (loss) and impairment from equity method investments, net (22) 60  Other 384  (142) Other income (expense), net $ 11,183  $ 37,716  (1) Includes all gains and losses, unrealized and realized, on equity securities.

For Q1 2026, the net effect of the gain on equity securities of $36.9 billion increased the provision for income tax, net income, and diluted net income per share by $8.2 billion, $28.7 billion, and $2.35, respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly contribute to the volatility of OI&E in future periods. Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (in millions; unaudited) : We provide non-GAAP free cash flow for the current quarter and trailing twelve months ("TTM") because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.

Quarter Ended TTM Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2026 Net cash provided by operating activities $ 27,747  $ 48,414  $ 52,402  $ 45,790  $ 174,353  Less: purchases of property and equipment (22,446) (23,953) (27,851) (35,674) (109,924) Free cash flow $ 5,301  $ 24,461  $ 24,551  $ 10,116  $ 64,429  Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures. TTM free cash flow: We define trailing twelve months free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months. Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues (in millions, except percentages; unaudited) : We provide non-GAAP constant currency revenues ("constant currency revenues") and non-GAAP percentage change in constant currency revenues ("percentage change in constant currency revenues"), because they facilitate the comparison of current results to historic performance by excluding the effect of foreign exchange rate movements ("FX Effect") as well as hedging activities, which are recognized at the consolidated level, as they are not indicative of our core operating results.

Non-GAAP constant currency revenues is defined as revenues excluding the effect of foreign exchange rate movements and hedging activities and is calculated by translating current period revenues using prior period exchange rates and excluding any hedging effect recognized in the current period. We calculate the percentage change in constant currency revenues by comparing constant currency revenues to the prior year comparable period revenues, excluding any hedging effect recognized in the prior period. 8 Revenues by Geography Comparison from the Quarter Ended March 31, 2025 to the Quarter Ended March 31, 2026 Quarter Ended March 31, 2026 % Change from Prior Period Quarter Ended March 31, Less FX Effect Constant Currency Revenues As Reported Less Hedging Effect Less FX Effect Constant Currency Revenues 2025 2026 United States $ 43,964  $ 53,975  $ 0  $ 53,975  23  % 0  % 23  % EMEA 25,923  31,468  2,515  28,953  21  % 9  % 12  % APAC 14,854  18,288  134  18,154  23  % 1  % 22  % Other Americas 5,233  6,345  356  5,989  21  % 7  % 14  % Revenues, excluding hedging effect (1) 89,974  110,076  3,005  107,071  22  % 3  % 19  % Hedging gains (losses) 260  (180) Total revenues $ 90,234  $ 109,896  $ 107,071  22  % 0  % 3  % 19  % (1) Total constant currency revenues of $107.1 billion for the quarter ended March 31, 2026 increased $17.1 billion compared to $90.0 billion in revenues, excluding hedging effect, for the quarter ended March 31, 2025.

Comparison from the Quarter Ended December 31, 2025 to the Quarter Ended March 31, 2026 Quarter Ended March 31, 2026 % Change from Prior Period Quarter Ended Less FX Effect Constant Currency Revenues As Reported Less Hedging Effect Less FX Effect Constant Currency Revenues December 31, 2025 March 31, 2026 United States $ 55,444  $ 53,975  $ 0  $ 53,975  (3) % 0  % (3) % EMEA 33,056  31,468  491  30,977  (5) % 1  % (6) % APAC 18,527  18,288  41  18,247  (1) % 1  % (2) % Other Americas 6,869  6,345  118  6,227  (8) % 1  % (9) % Revenues, excluding hedging effect (1) 113,896  110,076  650  109,426  (3) % 1  % (4) % Hedging gains (losses) (68) (180) Total revenues $ 113,828  $ 109,896  $ 109,426  (3) % 0  % 1  % (4) % (1) Total constant currency revenues of $109.4 billion for the quarter ended March 31, 2026 decreased $4.5 billion compared to $113.9 billion in revenues, excluding hedging effect, for the quarter e nded December 31, 2025.

Total Revenues — Prior Year Comparative Periods Comparison from the Quarter Ended March 31, 2024 to the Quarter Ended March 31, 2025 Quarter Ended March 31, 2025 Quarter Ended March 31, % Change from Prior Period   Less FX Effect Constant Currency Revenues As Reported Less Hedging Effect Less FX Effect Constant Currency Revenues 2024 2025 Revenues excluding hedging effect $ 80,467  $ 89,974  $ (1,605) $ 91,579  12  % (2) % 14  % Hedging gains (losses) $ 72  $ 260  Total revenues $ 80,539  $ 90,234  $ 91,579  12  % 0  % (2) % 14  % 9