Google gains 25M subscriptions in Q1, driven by YouTube and Google One

Overview

Google has added another 25 million paid subscriptions to its services over the past quarter, parent company Alphabet announced during its first-quarter earnings report on Wednesday. The company said it now has 350 million paid subscriptions across its services, up from 325 million in Q4 2025, with YouTube and Google One — its cloud storage and subscription service — plans driving the recent growth.

Key Points

• Subscription Growth: Google added 25M paid subscriptions in Q1 2026, reaching 350M total subscriptions • Main Drivers: YouTube Premium and Google One (cloud storage + Gemini AI features) are the primary growth engines • Gemini Numbers Missing: The earnings report didn't highlight the number of Gemini subscribers or monthly active users, suggesting the chatbot still has around 750M users (same as prior quarter) • Enterprise Growth: Gemini saw a 40% quarter-over-quarter increase in paid monthly active users in the enterprise market (no solid numbers provided)

YouTube Ad Revenue Concerns

• Revenue Miss: YouTube ad revenue was $9.88B vs. Wall Street's expected $9.99B • Subscription Impact: As users switch to YouTube Premium (ad-free), ad revenue declines—a trend that worries investors • Year-over-Year Growth: Despite the shortfall, YouTube ads grew 11% year-over-year • Combined Revenue: Last year, YouTube's annual revenue topped $60B across both ads and subscriptions

Financial Performance

• Total Revenue: Alphabet reported $109.9B in revenue, surpassing Wall Street expectations • Cloud Revenue: Cloud revenue alone topped $20B • Stock Performance: Alphabet's stock rose after the earnings beat

Strategic Shift

Alphabet CEO Sundar Pichai has warned analysts that investors should evaluate YouTube's business going forward based on a combination of ads and subscriptions, acknowledging that subscription growth negatively impacts ad revenue in the short term.