Alphabet beats Q1 estimates as AI and cloud momentum drive double-digit growth
Published: 21:15 24 Apr 2025 BST
Google parent company Alphabet Inc (NASDAQ:GOOG) saw its shares rise more than 4% afterhours on Thursday as it delivered an earnings beat for the first quarter.
Revenue jumped 12% year-over-year to $90.2 billion, attributed to strength in Google Search, YouTube ads, Google subscriptions and Google Cloud, each of which delivered double-digit growth.
Analysts had expected revenue of $89.2 billion.
Google Cloud revenue increased by 28% to $12.3 billion, in line with Street estimates, driven by expansion in Google Cloud Platform (GCP), including core GCP services, AI infrastructure, and generative AI solutions.
Services revenue, meanwhile, was up 10% at $77.3 billion.
Earnings per share of $2.81 were significantly higher than the $2.01 expected.
“We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business,” CEO Sundar Pichai commented.
He attributed the company’s growth to its “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.
Shares of Alphabet added 4.2% at about $159 post-earnings.
