Will Alphabet Stock Keep Rising After Crushing Q1 Earnings Expectations?

From Nasdaq: 2025-04-25 18:16:00

Alphabet’s stock, GOOGL, surged by +4% after reporting Q1 earnings that exceeded expectations. Despite regulatory concerns impacting the company, Q1 sales grew by 13% to $76.48 billion, with EPS reaching $2.81. Alphabet predicts a slowdown in advertising revenue and cloud services growth but plans to increase dividends and share repurchases.

Alphabet impressed investors with strong Q1 results, including double-digit revenue growth in key segments like Google Search and YouTube advertising. The company beat EPS estimates by 39%, continuing a trend of surpassing expectations for nine consecutive quarters. While cautious about future growth, Alphabet is poised for long-term value for shareholders.

Alphabet reported $15.1 billion in share repurchases and a 5% increase in quarterly dividends. This marks the company’s first dividend increase since 2024 and signifies a commitment to returning value to shareholders. With an additional $70 billion share repurchase authorization, Alphabet is focused on rewarding investors.

Following Alphabet’s robust Q1 results, the stock may continue to rise, pending earnings estimate revisions. Analysts will monitor the company’s cautious guidance closely. Despite offering long-term value to shareholders, the stock is currently rated a Zacks Rank #3 (Hold), indicating potential buying opportunities ahead. Investors can access Zacks’ portfolio services for $1 to see all their picks and recommendations.



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