Alphabet reports strong earnings with 22% revenue growth and AI-driven cloud surge.

Alphabet posted impressive earnings with a 22% year-over-year revenue increase and a 30% rise in operating income, driven by strong AI adoption and cloud growth. Its AI initiatives like Gemini and Waymo are expanding rapidly, and cloud revenue jumped 63% YoY, supported by a $460 billion backlog. Despite a low price-to-earnings ratio under 30 and robust growth, Alphabet plans $185 billion in capital expenditures by 2026, which may impact free cash flow through 2027. The company remains a strong long-term buy due to its integrated AI portfolio and dominant market platforms.