Alphabet Shares Jump on Q1 Beat as AI Spending Keeps UBS, Morgan Stanley Cautious

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Alphabet shares rose more than 7% after hours after the company reported Q1 revenue of $109.9 billion and EPS of $5.11, both above expectations. Search revenue grew 19%, Google Cloud backlog reached $462 billion, and Google Cloud crossed $20 billion in revenue for the first time. Alphabet also raised its 2026 AI capital expenditure guidance to $180–$190 billion, which kept UBS and Morgan Stanley cautious on the stock.

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