From Yahoo Finance: 2025-04-25 13:18:00

Alphabet, Google’s parent company, exceeded expectations with first-quarter earnings, reporting a net income of $34.5 billion on $90.2 billion in revenue. The company also announced a $70 billion stock buyback program and increased its quarterly cash dividend by 5%. The stock surged after-hours and continued to rise Friday.

Google Search remains a revenue anchor for Alphabet, with revenue growing nearly 10% year over year to $50.7 billion. The company’s generative AI Overviews tool, now with 1.5 billion users per month, is driving engagement with expanded language support and positive user feedback.

Alphabet’s Google Cloud segment posted revenue of $12.3 billion, up 28% year over year, solidifying its position as one of the fastest-growing cloud services providers. The company plans to invest approximately $75 billion in capital expenditures in 2025, focusing on AI infrastructure and data centers.

Despite a strong quarter, Google faces regulatory risks including antitrust cases that could lead to enforced data sharing or even a company breakup. Additionally, changes to the U.S.’ “de minimis” trade exemption may impact the company’s ads business among Asia Pacific-based retailers.

Wedbush analysts raised their revenue estimates for Alphabet, projecting second-quarter revenue of $91.9 billion and 2025 operating income of $123.2 billion. They remain cautious but see potential for multiple expansion in the coming quarters, highlighting the company’s positive outlook and growth potential.

Read more: Google Cloud, AI, ads, Waymo, and more: Google earnings takeaways