Alphabet, the parent company of Google, reported impressive first-quarter earnings for 2025, surpassing analyst expectations with a 12% increase in revenue. The overall revenue reached $90.2 billion, while net earnings surged by 46% to $34.54 billion. Significant growth was recorded across Google’s core business sectors, including Search, YouTube advertising, and Google Cloud.
CEO Sundar Pichai attributed this growth to the company’s robust “full-stack approach to AI,” highlighting that the Gemini service has 35 million daily users. The revenue figures exceeded analysts’ forecasts, which had projected $89.12 billion. Adjusting for currency fluctuations, earnings actually climbed 14%.
In addition to robust earnings, Alphabet raised its dividend by 5%, with each share now yielding $0.21 per quarter. This positive financial performance led to a 2.38% increase in Google’s stock price after market hours. Each of Alphabet’s primary products saw increases in revenue; YouTube advertising generated $8.93 billion, while overall advertising revenue reached $66.89 billion—a growth of 8.4% year-over-year.
Google Search revenue climbed to $50.7 billion, up from $46.16 billion the previous year. Pichai noted strong growth in this segment, driven by features like AI Overviews, which now boasts monthly usage of 1.5 billion users. Similarly, Google Cloud experienced remarkable growth with a 28% increase in revenue, totaling $12.3 billion, fueled by core cloud services and AI-powered solutions.
Despite these positive results, Alphabet’s ventures categorized under “Other Bets” reported a decline, generating $450 million, down from $495 million in the same quarter last year. This decline indicates challenges in Alphabet’s non-core segments.