Google’s parent company, Alphabet Inc., reported robust financial results for the first quarter of 2025, with revenue reaching $90.2 billion, surpassing analysts’ expectations of $89.1 billion. This marks a 12% year-over-year increase.
The numbers
$90.2 billion — Google’s revenue in the first quarter, beating analysts’ projections of $89.1 billion. The first-quarter revenue represents a 12% year-over-year lift.
$76.5 billion — Google’s Q1 sales in 2025, including $50.7 billion generated through Google Search, outpacing projections. The Google Cloud business, meanwhile, raked in $12.26 billion, a 28% year-over-year increase.
$66.8 billion — Google’s quarterly advertising revenue, coming in above Wall Street estimates of $66.4 billion. YouTube ad revenue specifically increased by about 10% year-over-year, bringing in $8.9 billion in the quarter.
$70 billion — The value of a new stock repurchase program greenlit by Alphabet’s board of directors this week, signaling confidence in the tech giant’s long-term prospects and balance sheet strength.
Advertising revenue totaled $66.8 billion, exceeding Wall Street estimates of $66.4 billion. YouTube ad revenue specifically increased by about 10% year-over-year, bringing in $8.9 billion in the quarter.
Google Cloud generated $12.26 billion, a 28% year-over-year increase. The company also announced a $70 billion stock repurchase program, signaling confidence in its long-term prospects.
CEO Sundar Pichai emphasized the company’s commitment to AI development, highlighting the Gemini 2.5 model, which now powers 15 unique Google products, each with over 500 million users. Active users of AI Studio and the Gemini API have grown over 200% since the start of 2025.
AI Overviews in Google Search now reach over 1.5 billion users monthly. The company is also testing ads in AI Overviews and has launched new features within Audience Insights and Performance Max.
Despite these achievements, Google faces significant legal challenges. The U.S. Department of Justice has ruled that Google operates an illegal monopoly in the online search market and that its adtech business violates U.S. competition law. Remedy hearings are underway.
Alphabet’s stock rose more than 6% in after-market trading following the earnings release. However, the stock has declined about 15% year-to-date amid ongoing regulatory scrutiny and economic uncertainty.
