Shares of the company rose 2.8 per cent to US$916.80 after the bell on Thursday.
This marks a 22pc increase in revenues year-on-year, up from 17pc the year before.
In Q1, Alphabet reported an increase in aggregate paid clicks of 44%.
Problems such as an advertiser boycott of YouTube appeared to have little impact on the company.
Google's net revenue - excluding $4.63 billion in traffic-acquisition costs - was $20.12 billion, up 22% from a year earlier, topping views.
Pichai, in response to an analyst's question about Google's channel strategy, replied that Alphabet's cloud business enjoyed the highest growth in headcount and capital expense of all Alphabet's businesses, and that it is now providing the kind of "heavy lifting" needed to help meet enterprise IT requirements. The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives.
Company's revenues rose 22 percent at $24.8b and profits are up by 29 percent to $5.43b, a performance that analysts called exceptional for a company so large. Alphabet said it had earnings of $7.73 per share on revenue of $24.8 billion, compared to Wall Street's expectations of earnings of $7.40 per share on revenue of $24.2 billion.
The company's approach to the market is to be one Google, Pichai said.
Last year, Google took on rivals Apple, Samsung and Amazon in a new push into hardware, launching premium-priced, in-house designed Pixel smartphones and a slew of other devices showcasing artificial intelligence (AI) prowess.
Alphabet shares rose 5 percent in 2016, while the broad Nasdaq Composite Index climbed 10 percent.
Pichai's massive pay package came even as his two bosses and Google co-founders Larry Page and Sergey Brin, once again drew salaries of only $1 for their roles as CEO and President, respectively, of parent company Alphabet.
"With the change to Alphabet, oversight has been easier because of increased visibility". "We're not going to invest if we don't see great opportunities and we feel like our track record for picking some important efforts long before others is pretty good".