Alphabet Stock Doubles as Gemini 3 and Cloud Drive Growth

Alphabet Inc. saw its share price double over the past year, rising from under $180 to approximately $360 per share by July 2026. This growth follows strong first-quarter 2026 results, where the company reported revenue of $109.9 billion, a 22% increase year-over-year and a significant rise from the 12% growth recorded in Q1 2025. Operating income rose 30% during the same period.

The surge is primarily attributed to the success of the Gemini 3 AI model and Google Cloud, which saw revenue grow 63% with a backlog exceeding $460 billion. Additional growth drivers include a 19% increase in Google Search revenue and a total of 350 million paid subscriptions across Google One and YouTube.

To sustain this momentum, Alphabet has increased its planned 2026 capital expenditures to as much as $190 billion, raising approximately $32 billion in additional debt to fund these investments. Further spending increases are expected in 2027. This financial performance led to Alphabet's inclusion in the Dow Jones Industrial Average and its position as the presumed third-largest holding for Berkshire Hathaway under Greg Abel. Future growth remains tied to the integration of AI in Search and the Waymo autonomous driving platform.