Alphabet Inc. Reports Revenue of $90.2 Billion for Q1-25

Reflecting robust momentum across its business, Alphabet Inc., the parent company of tech giant Google, on Thursday said that its consolidated revenue for Q1 of 2025 increased 12%, or 14% in constant currency, y-o-y to $90.2 billion.

Alphabet’s business such as Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud have delivered double-digit growth rates, the company said while the financial results for the first quarter of this year.

The Google Services revenues increased 10% to $77.3 billion, reflecting strong performance across Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads. The Google Cloud revenues increased 28% to $12.3 billion, led by growth in Google Cloud Platform (GCP) across core GCP products, AI Infrastructure, and Generative AI Solutions.

The total operating income increased 20% and operating margin expanded by 2 percentage points to 34% and net income increased 46% and Earnings Per Share (EPS) increased 49% to $2.81, the company said and announced a 5% increase to the dividend, resulting in a quarterly cash dividend of $0.21.

Alphabet CEO Sundar Pichai said that they were pleased with the strong Q1 results, which reflected healthy growth and momentum across the business.

“Underpinning this growth is our unique full stack approach to AI. This quarter was super exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achieving breakthroughs in performance and is an extraordinary foundation for our future innovation,” Pichai said.

He said that Google Search saw continued strong growth, boosted by the engagement they were seeing with features like AI Overviews, which now has 1.5 billion users per month.

“Driven by YouTube and Google One, we surpassed 270 million paid subscriptions. And Cloud grew rapidly with significant demand for our solutions,” he said.

Dividend Payments

Dividend payments to stockholders of Class A, Class B, and Class C shares were $1.2 billion, $171 million, and $1.1 billion, respectively, totalling $2.4 billion for the three months ended 31 March 2025.

Alphabet’s Board of Directors declared a quarterly cash dividend of $0.21 representing a 5% increase from the previous quarterly dividend of $0.20. The dividend is payable on 16 June 2025 to stockholders of record for each of the company’s Class A, Class B, and Class C shares as of 9 June 2025.

Stock Repurchases

The company said that a day on 23 April 2025, Alphabet’s Board of Directors authorised the company to repurchase up to an additional $70 billion of its Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares.

The repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.