11:16 AM EDT, 04/30/2026 (MT Newswires) -- Alphabet (GOOG, GOOGL) reported a strong Q1, with upside in Search and Cloud pointing to artificial intelligence driven growth and higher margins, BofA Securities said in a Thursday note.

BofA said Q1 net revenue of $94.7 billion and EPS of $5.11 beat street estimates, while search revenue rose 19% year over year and cloud revenue was 63% higher.

Cloud backlog grew 90% quarter over quarter to $462 billion, with about 50% expected to be recognized over the next 24 months, the firm said.

BofA raised its 2026 revenue estimate to $424.12 billion from $407.92 billion and its 2027 revenue estimate to $521.99 billion from $474.86 billion.

The firm also raised its 2026 EPS estimate to $14.43 from $11.45 and said the growing mix of recurring and higher durability cloud revenue supports a higher valuation multiple.

BofA reiterated its buy rating on Alphabet and raised its price objective to $430 from $370.

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