Alphabet exceeds revenue forecasts with Google Cloud increasing 63% and reaching US$20 billion

Alphabet, parent company of Google, announced this Wednesday (29) a financial statement that exceeded Wall Street’s expectations for first quarter revenue. The result was driven by the robust performance of its cloud computing business. The Google Cloud division, in particular, recorded significant growth and reached the mark of more than US$20 billion in revenue.

Após the release of the report, the company’s shares rose in the market. The advancement highlights the growing importance of cloud services and artificial intelligence for the technology giant, consolidating its position in a competitive landscape. Investidores follows sector movements closely.

Resultados powered by Google’s cloud

Google Cloud recorded revenue of US$20.02 billion, exceeding the estimate of US$18.05 billion made by StreetAccount analysts. Esse value represents a 63% increase over the previous year. The cloud unit is the main hub for the company’s artificial intelligence product and service offerings. The growth was attributed to Google Cloud Platform’s (GCP) expansion into AI solutions and AI infrastructure for enterprises. The company also reported that it has a backlog of US$460 billion in pending orders.

CEO Sundar Pichai highlighted the performance of the Gemini Enterprise platform. Ele mentioned that the number of paid monthly active users of Gemini Enterprise grew by 40% compared to the previous quarter. Esse data reinforces Alphabet’s investment and focus on its artificial intelligence capabilities. The expansion of the platform demonstrates strong engagement in the corporate segment.

Destaques of the company’s financial performance

Alphabet’s total revenue in the first quarter reached US$109.9 billion, above the US$107.2 billion forecast of analysts surveyed by LSEG. Isso represents 20% growth compared to last year. Essa is the company’s highest quarterly growth rate since 2022, highlighting a solid recovery. The company’s net profit was US$62.57 billion, an increase of 81% compared to the previous year. Esse robust advancement reflects the company’s operational efficiency.

Analistas also noted other important numbers in the report:

• Lucro per share:$5.11 (unclear if comparable to LSEG’s $2.63 expectation).
• Publicidade on YouTube:US$9.88 billion (below the estimate of US$9.99 billion).
• Custos Traffic Acquisition (TAC):US$15.22 billion (below the estimate of US$15.3 billion).
• Receita advertising Google:US$77.25 billion, an increase of 15% compared to last year.

Apesar of the slight drop in YouTube advertising compared to estimates, the overall results were positive. The company maintains its strength in several segments of the digital market.

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Crescimento and expansion of Waymo and Outras Apostas

The “Other Apostas” (Other Bets) division, which includes Alphabet’s self-driving car business Waymo, generated $411 million in revenue. Esse value represents a drop from the US$450 million recorded in the same period last year. However, Waymo reached a significant milestone by surpassing 500,000 fully autonomous trips per week during the quarter. Isso points to an expansion of technology.

In February, Waymo announced the raising of US$16 billion in a new round of investment led by external investors. The company was valued at US$126 billion, highlighting the great market potential of autonomous vehicles. Waymo also disclosed plans to expand its self-driving car services to Dallas, Houston, San Antonio and Orlando. Durante the first quarter, the company began fully autonomous operations on Nashville. A commercial launch in partnership with Lyft is planned for the end of this year, which promises to further expand its presence.

Cenário of the market and investments in technology

Alphabet shares have outperformed their peers in the “Magnificent Seven” group this month, up 21%. The technology sector is about to conclude its best month since April 2020. The Nasdaq index, for example, had gained 14% by Wednesday’s close. Wall Street has invested heavily in the sector. Isso comes despite concerns about rising oil prices. Interrupções in the supply chain are also a factor. Tais issues stem from the war on Irã, which could lead to an increase in AI infrastructure costs.

The four big cloud companies, known as “hyperscalers” — Alphabet, Amazon, Meta and Microsoft — released their results this Wednesday. Esta was the first update for investors since Estados Unidos began combat operations on Irã in late February. The market movement reflects continued confidence in the innovation capacity and profitability of these companies. The search for artificial intelligence solutions remains an essential driver for the sector.