What was Google Cloud's revenue in Q1 2026?

The absolute figure was not disclosed, but growth was 63% year-over-year.

What are the TPU chips that Alphabet started selling?

TPU (Tensor Processing Unit) are custom chips designed to accelerate AI workloads, developed internally by Alphabet and now sold externally.

How did the results affect GOOGL stock?

The stock trades at $384.8 with a 135.4% return over one year; the immediate impact of the announcement is not yet determined.

Alphabet Q1 2026: Cloud Revenue Surges 63%, TPU Sales Begin

Alphabet (GOOGL) reported Q1 2026 results, with Google Cloud revenue surging 63% year-over-year, outpacing competitors. The company also began selling its custom TPU chips to external customers, adding a new AI hardware revenue stream. Alphabet sharply raised capital expenditure plans for 2026 and 2027 to build out AI infrastructure despite potential margin pressure.

Alphabet (NASDAQ:GOOGL) reported strong Q1 2026 results, driven by a 63% year-over-year surge in Google Cloud revenue, outperforming major competitors. The company also announced the commencement of sales of its custom TPU (Tensor Processing Unit) chips to external customers, creating a new AI hardware revenue stream.

Key Financial Results

Metric	Q1 2026	YoY Change
Google Cloud Revenue	Not disclosed	+63%
Share Price (GOOGL)	$384.8	+135.4% over one year

Highlights from the Report

First external sales of TPU chips, adding an AI hardware revenue stream.
Significant increase in capital expenditure plans for 2026 and 2027 to expand AI infrastructure.
Cloud revenue growth far exceeds industry average.

Guidance

Alphabet did not provide specific numerical guidance for the next quarter but indicated continued heavy investment in AI infrastructure, which may pressure margins in the near term.

Impact on Stock

The stock (GOOGL) has delivered a 135.4% return over the past year and trades at $384.8. Strong cloud growth and TPU sales could boost investor confidence, but margin concerns may cap gains.

What This Means for Investors

Alphabet's report signals a strategic shift toward monetizing AI hardware alongside its strong cloud business. Investors should monitor margin trends as capex rises and assess whether revenue growth will offset cost pressures.