Alphabet (GOOGL.US) reported significantly better-than-expected results for Q1 2025, beating market expectations. The company demonstrated strong revenue growth dynamics in key segments and delivered a markedly improved operating result, particularly evident in the crucial cloud segment. The company’s shares are up more than 4% in after-hours trading.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Alphabet shares are up more than 4% in after-hours trading. Source: xStation
Alphabet reported revenue of $90.23 billion, representing a 12% year-over-year increase. This result exceeded the consensus expectations of $89.1 billion. The strong year-over-year growth was primarily driven by solid performance across the company’s core business segments. Google Search generated $50.7 billion, marking a 10% year-over-year increase. Stable momentum in the advertising segment—where the company achieved $66.89 billion, up 8% YoY—indicates a healthy financial position in Alphabet's most important business area. These figures are particularly noteworthy given market concerns over Google's ability to maintain its dominance in this segment.
At the operating income level, Alphabet delivered $30.61 billion, a 20% year-over-year increase, along with an improvement in operating margin to 33.92% (+2.29 percentage points). The company reported adjusted earnings per share of $2.81, representing nearly a 50% YoY increase and coming in 40% above consensus estimates. This net income marked the highest quarterly result in the company’s history.
Selected financial data for Alphabet – Q1 2025 (in $ billion, except EPS). Source: Alphabet, XTB Research
Revenue breakdown by segment (in $ billion). Source: Alphabet, XTB Research
What truly impressed investors were Alphabet’s very strong operating results. Effective cost management in a challenging environment is crucial for the continued monetization of the company’s rapidly growing business segments. Notably, Google Cloud delivered an operating income of $2.18 billion, beating market expectations by 12%. This result is also 142% higher than a year ago.
Moreover, contrary to market expectations, this figure exceeded the result from Q4 2024, marking the highest operating profit in the cloud segment in the company’s history and signaling continued improvement in Alphabet’s operating margin.
Operating Results by Segment (in $ billion). Source: Alphabet, XTB Research
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
