Alphabet Reports 12% Revenue Growth in Q1 2025, Surpassing Expectations

Published 54 minutes agoGOOGL

Alphabet Reports 12% Revenue Growth in Q1 2025, Surpassing Expectations

Alphabet has reported a strong start to 2025 with consolidated revenues rising 12% to $90.2 billion in the first quarter. This growth was 14% in constant currency, surpassing initial market expectations. The company's momentum is attributed to solid performances across its business segments.

In detail, Google Services posted a revenue increase of 10% to $77.3 billion, fueled by key areas such as Google Search, YouTube ads, and subscriptions. Notably, YouTube ads played a substantial role in this growth according to Insider Monkey. Google Cloud's revenues surged even higher, with a 28% increase to $12.3 billion, driven by the Google Cloud Platform and advancements in artificial intelligence solutions.

Alphabet highlighted its full-stack AI approach and the rollout of their advanced AI model, Gemini 2.5, as pivotal to its success this quarter. The company's operating income grew by 20%, expanding margins to 34%, while a 46% rise in net income improved earnings per share to $2.81. Additionally, the company announced a 5% dividend increase, raising the quarterly cash dividend to $0.21 per share. These results led to a more than 4% increase in Alphabet's shares during after-hours trading.

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Alphabet Reports 12% Revenue Growth in Q1 2025, Surpassing Expectations

Alphabet Reports 12% Revenue Growth in Q1 2025, Surpassing Expectations

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Alphabet has reported a strong start to 2025 with consolidated revenues rising 12% to $90.2 billion in the first quarter. This growth was 14% in constant currency, surpassing initial market expectations. The company's momentum is attributed to solid performances across its business segments. In detail, Google Services posted a revenue increase of 10% to $77.3 billion, fueled by key areas such as Google Search, YouTube ads, and subscriptions. Notably, YouTube ads played a substantial role in this growth according to Insider Monkey. Google Cloud's revenues surged even higher, with a 28% increase to $12.3 billion, driven by the Google Cloud Platform and advancements in artificial intelligence solutions. Alphabet highlighted its full-stack AI approach and the rollout of their advanced AI model, Gemini 2.5, as pivotal to its success this quarter. The company's operating income grew by 20%, expanding margins to 34%, while a 46% rise in net income improved earnings per share to $2.81. Additionally, the company announced a 5% dividend increase, raising the quarterly cash dividend to $0.21 per share. These results led to a more than 4% increase in Alphabet's shares during after-hours trading.