Alphabet (NASDAQ:GOOG) shares gained more than 3% in pre-market today after the tech giant reported first-quarter earnings that blew past expectations and reaffirmed its aggressive push into artificial intelligence, despite mounting global economic headwinds.
The Google parent posted earnings of $2.81 per share on revenue of $90.23 billion for the quarter ending March 31. While total revenue came in roughly in line with forecasts, operating income impressed at $30.6 billion, comfortably exceeding analyst estimates.
Alphabet continued to ramp up spending to support its AI ambitions, with capital expenditures reaching a record $17.2 billion. The company reiterated plans to invest $75 billion over the year to enhance its AI capabilities—a bold bet as competition intensifies, including from lower-cost AI models emerging overseas.
Google Search and related services generated $50.7 billion in revenue, up from $46.16 billion a year ago and slightly ahead of Wall Street expectations. The company highlighted growing user engagement with its AI Overviews feature, now reaching 1.5 billion monthly users.
Elsewhere, YouTube ad revenue rose to $8.93 billion, and Google Cloud grew to $12.26 billion, maintaining its upward trajectory and aligning with analyst projections.