According to Goldman’s investment research team, reported first-quarter earnings growth for the benchmark index came in near 25%. However, the bank noted that gains tied to investment-related activity at Amazon and Alphabet significantly boosted the aggregate results, creating what analysts described as a distortion in the overall earnings picture.

After adjusting for those investment gains, Goldman estimates underlying earnings growth for the S&P 500 was closer to 16%, still reflecting solid corporate profitability but at a notably slower pace than headline data suggests.

A Fortune article puts it this way: Google and Amazon’s biggest profit driver last quarter was their Anthropic stakes—which they haven’t sold

But I was unable to figure out how much of Google's Q1 profits were from Anthropic. They're not mentioned in the earnings release. However, gains from equity investments, which will include other investments like SpaceX, were $36.9 billion, with a footnote:

Includes all gains and losses, unrealized and realized, on equity securities. For Q1 2026, the net effect of the gain on equity securities of $36.9 billion increased the provision for income tax, net income, and diluted net income per share by $8.2 billion, $28.7 billion, and $2.35, respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly contribute to the volatility of OI&E in future periods.

Warren Buffett would frequently write a similar thing in his newsletters, that GAAP accounting rules requiring equity investments to be marked to market results in large swings in the value of Berkshire Hathaway's investments from one quarter to the next.

So apparently, Alphabet is becoming more like an investment firm now?