Alphabet Q1 revenue reaches $90.2 billion; Search advertising expands despite competition from ChatGPT

Alphabet Reports Impressive Q1 2025 Financial Results

Alphabet Inc., the parent company of Google, made a significant announcement today regarding its financial performance for the first quarter ending March 31, 2025. The company achieved a remarkable revenue of $90.2 billion, marking a robust 12% increase compared to the same period last year. This financial growth can be attributed to several key business sectors, including Google Search, YouTube advertising, subscription services, and Google Cloud.

1/ One quarter down, and 2025 already feels like a breakthrough year. Here’s a quick Q1 update from our earnings call🧵

— Sundar Pichai (@sundarpichai) April 24, 2025

Steady Growth Amidst Competition

Despite facing intensified competition from AI pioneers such as OpenAI, Google’s search capabilities continue to flourish. Revenue from Google Search and Services experienced a healthy 10% year-over-year increase, totaling $77.3 billion. During the earnings call, CEO Sundar Pichai highlighted the consistent upward trajectory of Search, noting the introduction of AI-enhanced features like AI Overviews, which now boasta 1.5 billion active users monthly.

YouTube’s Strong Performance

YouTube also reported impressive numbers, generating $8.93 billion in revenue, reflecting a 10.3% year-over-year growth. The platform has expanded its offerings with services like YouTube Premium and Google One, collectively achieving 270 million paid subscriptions.

Cloud Computing Segment Thrives

In the realm of cloud services, Google Cloud recorded revenue of $12.3 billion, representing an outstanding 28% year-over-year growth. This surge is largely attributed to advancements in the Google Cloud Platform (GCP), specifically in AI Infrastructure and Generative AI Solutions, including the Gemini APIs which are setting new industry standards.

CEO’s Insight on Performance

In discussing these favorable results, Sundar Pichai stated:

“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 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.”

Stock Repurchase and Dividend Increase

In a move to enhance shareholder value, Alphabet’s Board of Directors has authorized an additional $70.0 billion for stock repurchases. Furthermore, the Board has approved a 5% increase in dividends, resulting in a quarterly dividend of $0.21 per share.

Source & Images