Alphabet Q1 2025 Earnings: $90B Revenue, Stock Jumps 4%
Alphabet Inc., parent company of Google and YouTube, reported stronger-than-expected earnings for Q1 2025, sending shares up more than 4% in after-hours trading.
Q1 2025 Financial Highlights
Alphabet posted $90.23 billion in revenue, beating analyst expectations of $89.12 billion. Earnings per share came in at $2.81, well above the projected $2.01.
- Total revenue growth: +12% year-over-year
- Net income: $34.54 billion (up 46%)
- Cloud revenue: $12.26 billion (+28%)
- YouTube ad revenue: $8.93 billion
- Search and Other: $50.7 billion (+9.8%)
- Advertising revenue total: $66.89 billion (+8.5%)
Google Search and AI Tools Continue to Drive Growth
Google’s core Search and Ads segments remain strong despite rising AI competition. The company said AI Overviews, its generative AI feature in Search, now serves 1.5 billion users monthly, up from 1 billion in October 2024.
Cloud Business Grows, Margins Improve
While Google Cloud slightly missed revenue estimates by $10 million, its performance impressed with:
- 28% growth year-over-year
- Operating margins rising to 17.8% (from 9.4% last year)
Alphabet’s $32 Billion Bet on Cybersecurity
In March, Alphabet announced its largest-ever acquisition: a $32 billion cash deal to acquire Wiz, a cybersecurity startup. The deal is set to close in 2026 and aims to boost multi-cloud security offerings for Google Cloud.
Other Bets Struggle, But Waymo Expands
Alphabet’s Other Bets segment (Waymo, Verily) reported $450 million in revenue, down 9% year-over-year. The unit lost $1.23 billion.
Still, Waymo now provides over 250,000 paid autonomous rides per week across cities like San Francisco, LA, Austin, and Phoenix — a jump from 200,000 rides just months ago.
Macro Risks and Policy Impacts
Alphabet noted potential headwinds due to U.S. policy changes, particularly the end of the de minimis trade loophole next month. This could impact ad spending from APAC-based retailers like Temu and Shein, who have heavily relied on Google Ads.
Massive Stock Buyback and Capital Investments
Alphabet’s board approved a $70 billion stock repurchase program, mirroring last year’s plan. The company also reiterated its commitment to $75 billion in capital expenditures for the year — mostly for infrastructure, AI, and data centers.
Alphabet Stock Performance (After Hours)
- Ticker: GOOGL
- Change: +7.67 (+4.82%)
- After-Hours Price Surge: Fueled by revenue and profit beat.Â
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