Alphabet's Q1 earnings beat estimates, revenues up, stock rises

From Nasdaq: 2025-04-25 10:26:00

Alphabet’s first-quarter 2025 earnings of $2.81 per share beat estimates by 39.11%, with revenues reaching $90.234 billion, up 12% year over year. Google Cloud revenue surged 28.1% to $12.260 billion. Operating margin expanded to 20.2%. The company maintains a strong balance sheet with $95.328 billion in cash and marketable securities.

Google Services revenues increased by 9.8% to $77.264 billion, while advertising revenues rose 8.5% to $66.885 billion. YouTube’s advertising revenues improved by 10.3% to $8.972 billion. Other Bets revenues were $450 million, down 9.1% year over year. Google subscriptions, platforms, and devices revenues reached $10.396 billion, up 18.8% year over year.

Alphabet’s board declared a quarterly dividend of 21 cents per share, representing a 5% increase from the previous quarter. The company also authorized the repurchase of up to an additional $70.0 billion of its Class A and Class C shares. The stock was up 4% in pre-market trading following the strong results.

Alphabet currently holds a Zacks Rank #3 (Hold). Investors may consider better-ranked stocks like StoneCo, Baidu, and Qorvo in the Computer and Technology sector. StoneCo shares have appreciated 68.5% year to date, while Baidu and Qorvo are set to report their first-quarter 2025 results in May. StoneCo holds a Zacks Rank #1 (Strong Buy), while Baidu and Qorvo have a Zacks Rank #2 (Buy).



Read more at Nasdaq: GOOGL Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Stock Up