What to know

  • Alphabet reported Q1 2025 revenue of $90.2 billion, a 12% increase from last year.
  • Google Cloud revenue grew 28% to $12.3 billion, while Google Services reached $77.3 billion.
  • Net income rose 46% to $34.54 billion, and earnings per share increased to $2.81.
  • The company raised its quarterly dividend by 5% to $0.21 per share.

Alphabet, the parent company of Google, announced its financial results for the first quarter of 2025. The company reported total revenue of $90.2 billion, marking a 12% increase compared to the same period last year. This growth was driven by strong performance across Google Search, YouTube ads, subscriptions, platforms, devices, and especially Google Cloud.

Google Services, which includes Search, YouTube, and other platforms, generated $77.3 billion in revenue, up 10% year-over-year. Google Cloud delivered $12.3 billion in revenue, representing a 28% increase from the previous year. The cloud segment also achieved its highest operating profit to date, with operating income rising 142% year-over-year.

Alphabet's operating income for the quarter reached $30.61 billion, a 20% increase from last year. The operating margin expanded to 34%, up by 2 percentage points. Net income rose sharply by 46% to $34.54 billion, and earnings per share climbed to $2.81, up 49% from the previous year.

The company also announced a 5% increase in its quarterly cash dividend, bringing it to $0.21 per share. Alphabet's management highlighted continued investments in artificial intelligence and cloud infrastructure, with research and development spending rising 14% year-over-year.

Alphabet's strong results exceeded market expectations and led to a rise in its share price in after-hours trading. The company continues to focus on expanding its AI capabilities and cloud services, positioning itself for further growth in the technology sector.

Via: 9to5Google