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“We launched AI MAX to help advertisers adapt to this new way of searching. And earlier this month, it moved out of beta with improved performance quality across targeting and creative capabilities. Take [ Hilton EMEA ]. They captured 1/3 more clicks for 1/5 of the spend, while simultaneously increasing the average booking value by 55%. And Etsy saw a 10% search volume uplift with 15% of those queries being net new to their business.”

“Google Cloud's backlog nearly doubled sequentially, reaching $462 billion at the end of the first quarter. The increase was driven by strong demand for enterprise AI offerings and the inclusion of TPU hardware sales that Sundar referenced earlier. The majority of the backlog is related to typical GCP contracts and we expect to recognize just over 50% of the backlog as revenue over the next 24 months.”

“We are winning new customers faster with new customer acquisition doubling compared to the same period last year. We are seeing strong deal momentum, doubling the number of $100 million to $1 billion deals year-on-year and signing multiple billion dollar plus deals. And we are deepening relationships with existing customers outpaced their initial commitments by 45% accelerating over last quarter.”

“In Q1, Gemini Enterprise paid monthly active users grew 40% quarter-over-quarter. That includes major global brands like Bosch, Cityweft, Merck and Mars Inc. Our partner ecosystem plays an increasingly critical role in driving Gemini enterprise adoption. We saw 9x year-over-year growth both in seats sold with partners and in the number of partners adopting it for internal use.”

“CapEx was $35.7 billion in the first quarter with the overwhelming majority of the spend in technical infrastructure to support the AI opportunities we see across the company. Approximately 60% of our investment in technical infrastructure this quarter was in servers, and 40% was in data centers and networking equipment.”

“Subscription platforms and devices revenues increased 19% this quarter to $12.4 billion due to strong growth in both YouTube subscriptions, particularly in YouTube Music and Premium and Google One subscriptions, which benefited from increased demand for AI plans.”

“We are updating our full year 2026 CapEx guidance range to $180 billion to $190 billion, up from our previous estimate of $175 billion to $185 billion to now include investment related to the acquisition of Intersect, which closed in March.”

“Cloud accelerated again this quarter due to strong demand for our AI products and infrastructure. Revenue grew 63%, exceeding $20 billion for the first time and our backlog nearly doubled quarter-on-quarter to over $460 billion.”

“in Google Cloud, we have -- we are providing enterprise AI solutions, which this quarter had an 800% year-on-year increase from the prior year. So we are seeing strong demand for Gemini enterprise our AI solutions there.”

“Cloud operating income was $6.6 billion, tripling year-over-year and operating margin increased from 17.8% in the first quarter of last year to 32.9%.”

“Google Search & Other advertising revenues increased by 19% to $60.4 billion driven by growth in the retail and financial services verticals.”

“In Q1, revenue from products built on our GenAI models grew nearly 800% year-over-year.”

“the TPU hardware agreements that Sundar referenced in his prepared remarks, are reflected in our cloud backlog of the $462 billion. Although the majority of the backlog is still GCP agreements. Now as you think about the total backlog, just over half of it will convert to revenue in the next 24 months. And the TPU hardware sales, more specifically, we expect a small percent of them to see coming through as revenue later this year and then the majority to be realized as revenue in 2027.”

“we introduced our 8 generation TPUs, individually specialized for training and serving and able to take on the most demanding agentic workloads. TPU 8t provides high-performance model training with 3x the processing par of Ironwood and 2x the performance. TPU 8i delivers cost-effective low latency inference with 80% better performance per dollar than the prior generation.”

“In Maps, we're using Gemini to ensure promoted pins are deeply relevant to user surroundings, location of interest, history and intent. This work is improving ad's relevance by nearly 10%, leading to a significant increase in user engagement.”

“this was our strongest quarter ever for our consumer AI plans, primarily driven by adoption to Gemini app. Overall, the number of paid subscriptions has now reached 350 million with YouTube and Google One being the key drivers.”

“Lyria 3 has generated over 150 million songs since launching on the Gemini app. Nano Banana 2 reached 1 billion images in nearly half the time of Nano Banana 1. And Veo 3.1 Lite is the most cost-efficient video model today.”

“we launched Gemma 4, our most intelligent open model. It's been downloaded over 50 million times in just a few weeks. In fact, our open models have now been downloaded over 500 million times.”

“since upgrading AI overviews and AI mode to Gemini 3, we've reduced the cost of core AI responses by more than 30%, thanks to continued hardware and engineering breakthroughs.”

“more than 30% of our customers [ search ] now uses AI-enabled campaigns, AI MAX or Performance Max. And these advertisers are seeing more conversion for the same spend.”

“First-party models now process more than 16 billion tokens per minute via direct API used by our customers, up from 10 billion last quarter.”

“Over the past 12 months, 330 Google Cloud customers each processed over 1 trillion tokens. 35 reached the 10 trillion token milestone.”

“Gemini Enterprise is seeing tremendous momentum with 40% growth quarter-over-quarter in paid monthly active users.”

“we have reduced search latency by more than 35% over the past 5 years.”

“Gemini-powered workflows in BigQuery to grow over 30x year-over-year.”

“Gemini 3.1 Pro continues to push the frontier in reasoning, multimodal understanding and cost. We have quickly expanded the Gemini 3.1 Series of models to offer more choices for developers, including our cost-efficient flash models. 3.1 Flash Live, our latest audio model has improved precision and reasoning, making voice interactions more natural and intuitive. It's now powering conversational features in search in the Gemini app. Speech to text is now available in 70 languages.”

“we already provide various tiers of our subscription plans in which you can get access to more powerful models and that applies across your Google user experience and including in search, and you've seen the momentum we saw a very robust quarter in terms of our AI subscriptions growth, driven by interest in getting access to better Gemini models.”

“In March, we closed the acquisition of Wiz, a leading cloud and security AI platform, which is an incredible fit for the moment we are in. We have seen tremendous interest from customers in our unique cybersecurity and AI products and services to protect their IT estate. The performance of Wiz so far has exceeded our expectations.”

“Our custom TPUs, Axion CPUs and the latest NVDIA GPUs continue to form the industry's widest variety of compute options. NVDIA GPUs are a core part of our AI accelerator portfolio and will be among the first to offer NVDIA Vera Rubin NVL72 in addition to the Blackwell and Hopper-based instances already available.”

“As TPU demand grows from AI labs, capital markets firms and high-performance computing applications will begin to deliver TPUs to a select group of customers in their own data centers in the hardware configuration to expand our addressable market opportunity.”

“Last week, we welcomed Amazon, Meta, Microsoft, Salesforce and Stripe as new members to the UCP tech Council. They joined founding members Shopify, Etsy, Target, Wayfair and Google to further accelerate the transition towards an agentic future.”

“The largest contributor to cloud's growth this quarter was AI solutions driven by strong demand for industry-leading models, including Gemini 3. In addition, we had strong growth in infrastructure due to continued deployment of TPUs and GPUs”

“Direct offers in AI mode are resonating with users and continue to receive positive customer feedback. GAP, L'Oreal and Chewy are just some of the latest partners who have now signed up to test this Google Ads pilot.”

“we are compute constrained in the near term. And as an example, our cloud revenue would have been higher if you were able to meet the demand. So we are working through that moment, and we are investing”

“with Antigravity, we are shifting to truly agentic workflows. Our engineers are now orchestrating fully autonomous digital task forces and building at a faster velocity, much more to come here.”

“Gemini now powers YouTube creator partnerships, a centralized platform integrated directly into YouTube Studio for creators and Google ads for advertisers.”

“R&D expenses increased by 26% driven by compensation due to investment in AI talent as well as depreciation.”

“even in areas such as our technical infrastructure, where we are investing the significant CapEx investments in our data centers and servers. We are looking at how we drive scientific process innovation within that organization. And that is reflected both in cloud and Google services as we allocate cost based on consumption.”

“AI continues to drive search usage and queries are at an all-time high. We continue to invest in improvements to AI overviews, which are driving overall search growth and we're also seeing strong growth in both users and usage of AI mode globally.”

“Smart bidding now uses Gemini to match user intent to an advertiser's product and services more accurately and further drive performance. This level of granularity was previously impossible to achieve at scale.”

“thinking through how do we leverage AI across our business. As Sundar mentioned, the use of coding internally or how Gemini helps us there optimizing our real estate footprint.”

“We are accelerating the deployment of Gemini across our entire ads infrastructure to help businesses reach more customers in more places than ever before.”

“we expect our 2027 CapEx to significantly increase compared to 2026.”

“It's clear that our AI investments and full stack approach are driving performance across our business.”