YouTube’s ad business hit $9.88 billion in the first quarter of 2026, up 10.7 percent year-over-year, but just below Wall Street expectations.
Google Services revenue increased 16 percent to $89.6 billion, led by 19 percent growth in Google Search and more, 19 percent growth in Google subscriptions, platforms, and devices, and 11 percent growth in YouTube ads.
Overall, the number of paid subscribers across YouTube premium as well as Google One, Alphabet’s storage business, have hit 340 million, up from 325 million the prior quarter.
Alphabet reported Q1 2026 revenue of $109.9 billion, up 22 percent year-over-year and net income of $62.6 billion. Both came in above analyst expectations.
“2026 is off to a terrific start. Our AI investments and full stack approach are lighting up every part of the business. Search had a strong quarter with AI experiences driving usage, queries at an all time high, and 19% revenue growth. Google Cloud revenues grew 63% with backlog nearly doubling quarter on quarter to over $460 billion. This was our strongest quarter ever for our consumer AI plans, driven by the Gemini App. Overall the number of paid subscriptions has now reached 350 million, with YouTube and Google One being the key drivers,” Sundar Pichai, CEO of Alphabet and Google said.
More to come.
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