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Alphabet delivered an exceptional financial performance in Q1 2026, with net profit surging by 81% and topline revenue growing by 22%. YouTube advertising revenue climbed 11% to $9.883 billion, while total subscriptions reached 350 million following the addition of 25 million new users. In a strategic move to sustain this momentum, the company raised its capital expenditure (CAPEX) guidance to further accelerate investments in AI and cloud infrastructure. Alphabet also highlighted the expansion of its Waymo self-driving unit, signaling a commitment to scaling autonomous technology alongside its core businesses. Analysts view the upward revision in CAPEX as a clear indicator of the company's aggressive stance in the AI arms race. These results underscore Alphabet's ability to drive massive profitability while simultaneously investing in next-generation technology sectors.
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