Overview
- Alphabet's Q1 2025 net profit reached $34.5 billion, a 46% year-over-year increase, with earnings per share of $2.81 surpassing analyst expectations of $2.34.
- Cloud computing revenue grew by 28% year-over-year, doubling its share of Alphabet's total revenue to nearly 14% over the past five years.
- Generative AI advancements include the integration of the Gemini assistant into Google Search, offering AI-generated summaries at the top of results, and AI prewriting over 30% of Alphabet's software code.
- Cloud profitability saw significant improvement, with operating income more than doubling and margins expanding, signaling the financial viability of Alphabet's AI investments.
- CFO Anat Ashkenazi confirmed a $75 billion investment plan for 2025 to further bolster cloud and AI capabilities, reaffirming the company's long-term growth strategy.