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Mar 31, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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