MOUNTAIN VIEW, Calif. — Alphabet Inc. shares edged lower in midday trading Friday, trading around $384 after the tech giant delivered robust first-quarter results that underscored its dominance in search advertising and accelerating growth in artificial intelligence-powered cloud services. The modest decline of roughly 0.13 percent came amid broader market fluctuations as investors digested strong earnings against ongoing antitrust scrutiny.

Alphabet reported consolidated revenue of $109.9 billion for the quarter ended March 31, a 22 percent increase from the prior year and beating Wall Street expectations. The performance marked the company’s 11th consecutive quarter of double-digit growth, driven largely by Google Search and YouTube advertising alongside surging demand for Google Cloud infrastructure. Operating income rose 30 percent to $39.7 billion, with margins expanding to 36.1 percent, reflecting operational discipline amid heavy AI investments.

Net income jumped 81 percent to $62.6 billion, translating to earnings per share of $5.11 — a significant beat over analyst forecasts. Chief Executive Sundar Pichai highlighted AI’s pervasive impact, stating it is “lighting up every part of the business.” Google Cloud revenue climbed 63 percent year-over-year, fueled by Gemini AI tools and enterprise adoption, while Search revenue grew 19 percent despite competitive pressures from generative AI chatbots.

The results sent shares higher in after-hours trading Wednesday before Friday’s slight pullback. Analysts praised the “full-stack” AI strategy integrating hardware, software and services, positioning Alphabet to capitalize on the next wave of technological transformation. Capital expenditures rose sharply as the company ramps data center capacity for AI training and inference, with guidance signaling further increases into 2027.

Yet regulatory clouds loom large. European Union authorities continue probing Alphabet under the Digital Markets Act, recently providing guidance on opening services to rivals including AI developers. In the United States, the Department of Justice seeks structural remedies following monopoly findings in search and ad tech markets, potentially forcing changes to default agreements and data practices that could reshape Google’s core business. Brazil’s antitrust authority has also deepened its review of journalistic content practices.

These legal battles represent both risk and distraction as Alphabet invests tens of billions in AI infrastructure. Pichai and other executives have emphasized compliance while advocating for innovation-friendly regulation. The company maintains strong cash flow and a fortress balance sheet to weather potential fines or remedies, but prolonged uncertainty could pressure margins or force business model adjustments.

Alphabet’s advertising ecosystem remains resilient despite economic headwinds and AI disruption fears. YouTube Shorts and performance advertising products delivered robust growth, while the company’s focus on responsible AI deployment helps differentiate Gemini from competitors. Enterprise customers increasingly choose Google Cloud for its security, scalability and integrated AI capabilities, contributing to backlog expansion.

Dividend news provided another positive signal. The board approved a 5 percent increase to the quarterly payout, now $0.22 per share, reflecting confidence in sustained cash generation. Share repurchases continue as part of a disciplined capital return program, supporting shareholder value amid volatility.

Wall Street reactions were largely bullish. Several firms raised price targets, citing AI momentum and cloud acceleration as reasons for optimism. Consensus forecasts project continued double-digit revenue growth through 2026, with cloud margins expanding as scale efficiencies materialize. However, elevated capital spending — potentially reaching $190 billion this year — will test near-term profitability even as long-term positioning strengthens.

Competitive dynamics in AI remain fluid. OpenAI, Anthropic and Microsoft partnerships influence the landscape, yet Alphabet’s vast data assets, distribution reach through Android and Search, and hardware efforts like custom TPUs provide distinct advantages. Gemini’s multimodal capabilities and integration across products position it well for consumer and enterprise use cases.

Broader market context shows Big Tech navigating similar themes — innovation versus regulation, growth versus profitability. Alphabet’s results compare favorably to peers, with cloud growth outpacing many rivals and advertising holding steady. The modest Friday dip may reflect profit-taking or rotation rather than fundamental concerns following the earnings beat.

Looking ahead, investors will monitor AI monetization progress, regulatory developments and macroeconomic impacts on advertising spend. Alphabet’s diversified portfolio — from Waymo autonomous vehicles to Pixel devices and subscription services — provides multiple growth vectors beyond core search. Executives express confidence that AI investments will yield substantial returns over time.

For retail investors, Alphabet remains a cornerstone holding in tech portfolios, offering exposure to search dominance, cloud computing and emerging AI opportunities. The company’s scale, brand strength and engineering talent underpin long-term optimism despite short-term volatility from legal and spending pressures.

As the second quarter unfolds, focus shifts to product launches, partnership announcements and further regulatory clarity. Alphabet’s ability to balance aggressive AI investment with financial discipline will determine whether the current momentum sustains through 2026 and beyond. Friday’s trading action, while slightly negative, does little to dim the overall positive narrative emerging from the earnings report.

Its head of consumer protection policy Sue Davies said: “It is deeply concerning that another children’s craft product, particularly from a major brand like Crayola, which is sold by big-name retailers, has been recalled due to potential asbestos contamination, continuing a worrying trend of recalls involving this deadly substance.

Tech giant Meta is threatening to cut off access to its social media platforms in New Mexico as a response to the state’s legal effort to compel changes to child safety protocols on the platform.

Meta and the state of New Mexico are expected to proceed to the second stage of their trial next week after a jury recently issued a $375 million award to the state after finding that the company misled consumers about the safety of its platforms and protections for children against sexual predators.

The next phase of the trial will concern what actions the parent company of Facebook, Instagram and WhatsApp must take to address those issues.

Among the remedies New Mexico is seeking is to impose a requirement that Meta meet a 99% accuracy threshold in verifying that children on its platform are at least 13 years old. Meta has pushed back on that requirement, arguing in a court filing that it’s unfeasible and would require it to “comply with impossible obligations.”

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Meta is warning that it may be forced to pull its apps from New Mexico if the state prevails in requiring the social media giant to implement certain safeguards. (Arda Kucukkaya/Anadolu via Getty Images)

Meta’s legal team said in a filing that New Mexico’s “requests for relief are so broad and so burdensome, that if implemented it might force Meta to withdraw its apps entirely from the State of New Mexico as an alternative way of complying with the injunction.”

“It does not make economic or engineering sense for Meta to build separate apps just for New Mexico residents,” Meta’s lawyers added. “Nor could Meta guarantee the perfection the State demands, making it impractical for Meta to operate in New Mexico.”

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The company has argued that it’s being unfairly singled out in comparison to other social media platforms that are popular with young people. It also previously signaled it will appeal the $375 million civil judgment against it.

New Mexico pushed back on Meta’s assertion that it would be impractical to comply with the safeguards it’s seeking for social media apps.

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Meta is the parent company of apps including Facebook, Instagram and WhatsApp. (Reuters/Dado Ruvic/Illustration)

“Meta is showing the world how little it cares about child safety,” said New Mexico Attorney General Raúl Torrez. “Meta’s refusal to follow the laws that protect our kids tells you everything you need to know about this company and the character of its leaders.” 

“We know Meta has the ability to make these changes. For years the company has rewritten its own rules, redesigned its products, and even bent to the demands of dictators to preserve market access. This is not about technological capability. Meta simply refuses to place the safety of children ahead of engagement, advertising revenue, and profit,” Torrez added.

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New Mexico is also seeking that Meta implement safer recommendation algorithms that don’t prioritize engagement over child well-being, restrictions on end-to-end encryption for minors, prominent warning labels about the platform’s risks, permanent bans for adults engaging in or facilitating the exploitation of children, and an independent oversight regime through a court-appointed child safety monitor.

Companies announcing new appointments include Northern Powergrid, Richard Reed Solicitors, RMT Accountants & Business Advisor, CMP Products, RWO and Robson Laidler Wealth

RMT Accountants & Business Advisors has brought two further senior recruits into its audit team as it continues to invest in meeting growing client demand. Joe Mackie-Walsh has joined the Gosforth-based firm’s audit team as an associate director, with Becky Barker taking up the role of audit manager.

Originally from Darlington, Mr Mackie-Walsh moved to the London office of one of the UK’s Big Four firms after graduating from Newcastle University before deciding to return to the North East. He brings over a decade of experience across a broad range of sectors, gained at leading North East professional services firms and private businesses.

Ms Barker also began her career in London after graduating from Durham University and has over eight years’ audit experience gained in practices in the capital and back in the North East.

Paul Gainford, director of commercial services at RMT Accountants & Business Advisors, added: “We’ve seen a surge in new business wins over recent months from a wide range of clients, and we’ve been building our audit team to ensure the support and advice they need is on hand.

“Joe and Becky are excellent additions to this team, with both the personal and professional qualities that will help them thrive at RMT, and we’re expecting to see further new recruits joining us in the coming months.”

Northern Powergrid has made two senior leadership appointments to strengthen its regional operations. Paul McGinlay, who has joined the executive team as director of regional operations, has more than 20 years of senior leadership experience from the telecoms sector, having led large-scale, field engineering and operational teams across Scotland and the North of England.

As director of operations for the North of England at Openreach, he led a team of around 3,500 engineers overseeing regional operations and service delivery. He now leads Northern Powergrid’s regional operations directorate, the company’s largest, comprising around 1,800 colleagues across the North East and Yorkshire.

Meanwhile Brad Jobson has been appointed general manager for Northumberland, County Durham and Tyne and Wear. He has spent almost three years at Northern Powergrid and most recently held the role of commercial manager for the company’s energy flexibility offering, where he played a key role in supporting the transition to a smarter, more flexible electricity network.

In his new role, Brad will be responsible for regional operational performance, safety leadership and delivering business plans across the North East.

Newcastle engineers RWO has strengthened its geoenvironmental and ground engineering operations with two appointments. Neil Jones has extended his contract with the Seaton Burn company as geoenvironmental services associate director, having joined two years ago following a short period of retirement,

With more than 40 years of experience and expertise, Mr Jones will continue to be responsible for the design and preparation of geotechnical design solutions for clients who include national housebuilders and developers, as well as staff development and training, reviewing reports and ensuring technical compliance.

The company also welcomes Spencer Ollivier, who joins the geoenvironmental team as an experienced geotechnical engineer. His role will include geohazard assessments, desk studies, site walk overs, planning, supervising and reporting on ground investigations and the preparation of specifications and reports.

Department head and director Chris Rudd said: “It’s great to have Spencer onboard and extend Neil’s time with us. Both are assets to the business as we move forward and invaluable members of the RWO team.”

Sunderland based Richard Reed Solicitors has announced expansion of its conveyancing department. The team, led by Nicola Bennell, director and solicitor, has promoted Steven Douglas to associate solicitor, and welcomed Kathryn Musgrove as solicitor. Savannah Beckett and Hannah Cullen have also recently joined the team.

Additional support has been provided through the recruitment of paralegals Lynn Liddle and Lucy Cardy. Other strategic appointments include Matthew Lockey, who has been promoted to head of private family law, having joined the firm in May 2023. In addition, Helena Dar has joined as solicitor in the wills, trusts & probate team.

Sarah Reid, managing director, Richard Reed said: “We are delighted to welcome a number of new colleagues to the firm and to recognise the achievements of our newly promoted team members, Matthew and Steven. This period of growth is a testament to the hard work of our people and the trust our clients place in us. As we continue to expand, our focus remains on delivering a personal, high-quality service across all areas of the business.

“We believe our people are our greatest asset, and we are committed to investing in our people at every stage of their careers. We remain dedicated to creating an environment where talent is nurtured, and success is shared.”

CMP Products has appointed a new chief operating officer to drive productivity and sustainable growth across the division. Demos Hoursoglou brings extensive senior leadership experience across a range of engineering and manufacturing environments, with a strong track record of delivering operational transformation programmes.

His priorities will include enhancing operational efficiency, strengthening safety standards and investing in people development across the organisation. Mr Hoursoglou joins CMP from RLC Aerospace Limited, where he’d worked as director of operations for over a year. Prior to that he’d worked for Jaguar Land Rover and Honda UK.

He said: “I’m delighted to be joining CMP at such an important stage in its growth journey. Throughout my career, I’ve been passionate about improving operational performance, driving efficiency and building strong, engaged teams. CMP’s clear commitment to sustainable growth and continuous improvement makes this an exciting opportunity. I look forward to working closely with colleagues across the business to strengthen operations, enhance collaboration and ensure we deliver consistently against our long‑term ambitions.”

Mr Hoursoglou’s appointment follows the announcement that chief operating officer, Steve Holt, will retire at the end of May after nearly 38 years with the business.

Newcastle wealth management firm Robson Laidler Wealth has appointed Hannah Witty as a chartered financial planner and associate director. Ms Witty, originally from West Sussex, brings more than 15 years of financial advice experience to the firm and will play a key role in supporting growth while enhancing the service for new and existing clients.

She was previously a financial adviser at Wades Financial Services, recently acquired by Foster Denovo, and began her career at Three Counties, where she gained her professional qualifications.

Directors of RL Wealth Neil and Amanda Cowie, who have known Ms Witty professionally for many years, are pleased to welcome her into their team.

The mum-of-three is passionate about driving change and empowerment of women in the financial services sector with recent industry data from the Financial Conduct Authority showing that only 15 to 17% of financial advisers are female.

She said: “I’m excited to be joining Robson Laidler Wealth at such an important time in its journey. I’ve always admired the firm’s independent, family-led approach and its dedication to putting clients first. I look forward to contributing to the team and supporting clients in achieving their financial goals. I’m proud to be stepping into a senior role and helping to model what’s possible for high-performing women in financial services.”

The housebuilder’s warning over building cost inflation comes as other construction firms have also cautioned about the impact of the Iran war on UK housebuilder costs

Housebuilder MJ Gleeson has raised concerns over building cost inflation, triggering “higher than usual caution” regarding its financial position.

The Sheffield firm, which specialises in homes at the lower end of the housing market, said: “We have recently seen some softening in footfall and reservations, and limited increases in the cost of some materials.”

The effective blockade of the Strait of Hormuz resulting from the Iran conflict has sent supply chain and energy costs soaring, with construction firms cautioning this could drive up building expenses.

Housebuilders have also indicated that inflation fears are dampening demand for new homes, with MJ Gleeson noting it has witnessed appetite beginning to decline.

“This, together with ongoing challenges with planning and site viability, prompts even higher than usual caution in how we manage the business, including land investment decisions, into the next financial year,” chief executive Graham Prothero stated, as reported by City AM.

However, MJ Gleeson reported it has experienced robust trading at the beginning of this year, with net reservation rates exceeding those from the same period last year, at 0.88 compared to 0.86.

The housebuilder’s share price surged more than 2 per cent on Friday’s opening, reaching 234p, though the stock remained down over 44 per cent year-to-date.

Other construction companies have cautioned in recent days and weeks that the anticipated effects of the Iran conflict on the sector have started to materialise. Proservice Building Services Marketplace also issued warnings about difficulties confronting the construction industry on Friday as it reported revenue that missed market forecasts.

The AIM-listed digital marketplace for building tools and supplies, previously known as HSS Hire before the latter’s sale last year, said on Friday it had experienced “broader macroeconomic pressures – particularly within the UK construction sector, which has weighed on demand across parts of the Group’s end markets”.

Proservice witnessed a substantial 18% decline in its share price on Friday’s opening, to 3.15p, driving the stock to a 56 per cent tumble in the year to date.

There is “an uncertain macro-economic backdrop which is having an impact on both our buyers and sellers,” the company stated.

The firm reported revenue of £248m for the year ending March, beneath analyst expectations of £260m, and said its pre-tax earnings were “expected to be at breakeven.”

Proservice said it was also encountering obstacles in its attempts to refinance its £41m bank debt, with existing facilities due to expire in September. “Wider macroeconomic and geopolitical issues have resulted in discussions taking longer than previously guided,” the company said.

On Thursday, FTSE 100 housebuilder Persimmon said it is starting to witness cost inflation entering its supply chain. The company said: “There are early signs of increased inflation in the supply chain, driven by higher energy costs, which are likely to impact the second half of 2026 and into 2027.

“We are looking to mitigate these where possible through our strong relationships with our suppliers and subcontractors.”

The government is relying on housebuilders to achieve its 1.5m homes target, yet rising construction cost inflation is compounding existing concerns over whether this ambition can be realised.

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