Catenaa, Friday, April 25, 2025- Google parent company Alphabet beat wall street estimates by recording a revenue of $90 billion as ads, subscriptions, platforms, and devices recorded double digit growths.
Alphabet’s revenue increased by 12% year over year in the first quarter to $90.2 billion, whereas the wall street estimated a revenue of $89.1 billion.
It said that YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each delivered double-digit growth rates.
“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. 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, CEO Sundar Pichai said.
He said that Google 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.
He said YouTube and Google One, Google has surpassed 270 million paid subscriptions.
Alphabet’s total operating income increased 20% and operating margin expanded by 2 percentage points to 34%, while net income increased by 46%.
Earnings per share of the company increased by 49% to $2.81 and the company announced a 5% increase to the dividend, resulting in a quarterly cash dividend of $0.21.
Alphabet’s dividend payments to stockholders of Class A, Class B, and Class C shares were $1.2 billion, $171 million, and $1.1 billion, respectively, totaling $2.4 billion for the three months.
Alphabet’s Board of Directors has also 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.
Google stock rose by 4.5% premarket on Friday after the company released its earnings report.
