Google Cloud Revenue Crosses $20 Billion — Paid Subscriptions Increase by 25 Million

Alphabet said it added 25 million paid subscriptions across its services during the first quarter, lifting the total to 350 million from 325 million in the previous quarter.

The company said growth was mainly driven by YouTube and Google One plans.

Gemini Numbers Not Detailed

Alphabet did not disclose updated subscriber totals or monthly active user figures for Gemini. Access to advanced Gemini tools is now bundled with Google One plans, which continue to expand.

The absence of updated user figures may indicate that Gemini remains above the 750 million user level reported in the prior quarter.

Google said Gemini’s paid monthly active users in the enterprise segment increased 40% quarter over quarter, though it did not provide a specific total.

YouTube Ad Revenue Misses Estimates

YouTube advertising revenue came in below Wall Street expectations, although it continued to grow from a year earlier.

According to the report, Wall Street expected $9.99 billion in YouTube ad revenue for the quarter, while Alphabet reported $9.88 billion.

Alphabet chief executive Sundar Pichai had previously said investors should evaluate YouTube using both ad and subscription revenue, noting that users moving to YouTube Premium can reduce ad income. YouTube generated more than $60 billion in annual revenue last year across advertising and subscriptions. Fourth-quarter 2025 YouTube ad revenue was $11.4 billion, while first-quarter 2026 ad revenue was $9.9 billion.

Alphabet said the latest figure was up 11% year over year. Alphabet shares rose after the company reported quarterly revenue of $109.9 billion, supported by strong cloud performance.

AI Demand Accelerates

Pichai said cloud growth was supported by strong demand for Gemini Enterprise and related AI services. He also pointed to higher demand for TPU hardware and data centers. Alphabet said AI products built on its generative AI models grew nearly 800% year over year. Gemini Enterprise increased 40% quarter over quarter. AI token usage through Google’s API rose to 16 billion tokens per minute from 10 billion in the fourth quarter.

Large Deals and Capacity Limits

Pichai said new customer acquisition doubled year over year. He added that the number of deals valued between $100 million and $1 billion also doubled, with multiple billion-dollar-plus agreements signed.

Customers exceeded their initial commitments by 45% quarter over quarter. However, Pichai said Google Cloud remains constrained by available computing capacity in the near term. Alphabet said its cloud backlog doubled during the quarter to $462 billion. The company expects to work through 50% of that backlog over the next 24 months.

Pichai said Google continues investing based on return on capital to support future growth and advanced infrastructure.