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Mar 31
Alphabet Q1 2025 Earnings Report
Alphabet reported strong Q1 2025 results with significant year-over-year growth in revenue, EPS, and net income.
Key Takeaways
Alphabet delivered a strong quarter driven by robust growth across Google Services, Google Cloud, and subscriptions, underpinned by AI advancements and increased user engagement.
Revenue grew to $90.2 billion, driven by double-digit growth in Search, YouTube ads, subscriptions, and Cloud.
EPS increased 49% to $2.81 and net income rose 46% to $34.54 billion.
Google Cloud revenue jumped 28% year-over-year to $12.26 billion.
Launched Gemini 2.5 AI model, fueling engagement in Search and other services.
Alphabet
Alphabet
Alphabet Revenue by Segment
Revenue by Segment
Google Services Revenue
CapyFin.comGoogle Cloud Revenue
CapyFin.com Forward Guidance
Alphabet expects continued growth driven by momentum in AI-powered products, enterprise cloud adoption, and user engagement in subscriptions and services.
Positive Outlook
- Strong momentum from Gemini 2.5 AI model.
- Continued growth in Search and YouTube ad revenue.
- Enterprise demand for Google Cloud solutions remains high.
- Paid subscriptions surpassed 270 million users.
- Operating margin improved to 34%.
Challenges Ahead
- Losses from 'Other Bets' increased year-over-year.
- TAC continued to grow, impacting margin expansion.
- Higher R&D expenses driven by AI investments.
- Slight decline in Google Network revenue.
- Cash and equivalents slightly down compared to end of last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income