Alphabet Shares Surge 6%+ After Q1 Earnings Crush Expectations on AI Search Boost

Alphabet's stock jumped around 6-7% in after-hours and early trading following blockbuster Q1 2026 earnings reported April 29, with adjusted EPS of $5.11 smashing $2.63 estimates by 94% and revenue hitting $109.90B versus $107.03B expected. AI features like Overviews and Mode drove Search revenue to $60.4B, up 19% YoY, debunking cannibalization fears, while Google Cloud exploded 63% to $20.03B with a $462B backlog at 32.9% margins. Despite capex doubling to $35.67B and FCF dropping 47% to $10.12B, the results signal AI dominance, supporting price targets of $403-$433 amid $175-185B infrastructure plans.