Alphabet’s Q1 earnings exceeded expectations with a 12% increase in revenue

nandika.iyerravi@futurenet.com (Nandika Ravi)
2025-04-24 18:40:00
www.androidcentral.com

What you need to know

Alphabet’s Q1 earnings saw a revenue growth of 12% year-over-year to $90.2 billion and net earnings surging by 46% to $34.54 billion.
Google’s core businesses, including Search, YouTube advertising, and Google Cloud, all experienced significant growth.
CEO Sundar Pichai said the company’s “full-stack approach to AI” is a key driver of this growth, noting that Gemini has 35 million daily users.

Alphabet, Google’s parent company, announced its first-quarter earnings for this year today (April 24). The company’s revenue exceeded expectations and grew by 12% year-over-year, with consolidated revenues of $90.2 billion, according to its earnings report.

This number is more than what analysts were expecting to see ($89.12 billion). If currency fluctuations aren’t considered, the company’s earnings actually went up by 14%.

Alphabet’s dividend (regular cash payment to shareholders) saw an increase of 5%, so each share will now receive $0.21 per quarter. Google’s stock also went up by 2.38% after the market closed this evening. Its net earnings increased by a large margin of 46%, coming up to $34.54 billion.

“We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business. Underpinning this growth is our unique full-stack approach to AI,” said CEO Sundar Pichai

All of the company’s main products saw an overall increase in revenue. To start, the first-quarter earnings report stated that YouTube’s advertising brought in $8.93 billion to the company and overall advertising brought in $66.89 billion, which is up by 8.4% from the same quarter last year, according to CNBC.

Google Gemini response on iPhone 16 Pro Max

(Image credit: Andrew Myrick / Android Central)

Google’s Search also saw gained $50.7 billion in revenue this quarter which is up from $46.16 billion in 2024. “Search saw continued strong growth, boosted by the engagement we’re seeing with features like AI Overviews, which now has 1.5 billion users per month.”

Google Cloud also took the spotlight during this quarter, with its revenue jumping by 28% to $12.3 billion. According to the report, this was driven by the company’s core cloud services, AI infrastructure, and new AI-powered solutions

With respect to AI, during the earnings call, Pichai also stated that they’re seeing healthy growth and momentum across all their AI-powered products. Specifically speaking about AI Overviews, the feature provides you a quick summary of your search has seen “over 1.5 billion users per month, and we are excited by the early positive reaction to AI mode.”

AI-mode-multimodal

(Image credit: Google)

During the call, Pichai was asked about the company’s ongoing trial with the Justice Department. It was revealed that Gemini has 35 million daily users, while 122.58 million people use ChatGPT every day, which is a pretty big margin.

When asked what Google is doing to increase Gemini’s daily metrics, Sundar said, ” I think we have the best model out there now, and I think I think that’s going to drive increased adoption as well.” He noted that they are innovating with AI mode, an exciting roadmap ahead with the Gemini app as well.

Lastly, Alphabet’s ventures outside of Google’s products that are capped under “Other Bets” saw a decrease in revenue this quarter. This segment generated $450 million in revenue, which is much lower than the $495 million that it made in Q1 last year.

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