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2w ago

Alphabet Reports Record Q1 Earnings as AI Drives Growth Across Key Segments

The tech giant posted $90.2 billion in revenue and a 46% profit surge, bolstered by AI-powered search, YouTube ads, and cloud services, while navigating antitrust trials and tariff concerns.

FILE - A sign is displayed on a Google building at their campus in Mountain View, Calif., on Sept. 24, 2019. (AP Photo/Jeff Chiu, File)
Figurines with computers and smartphones are seen in front of Alphabet logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • Alphabet exceeded analyst expectations with $90.2 billion in Q1 revenue, a 12% year-over-year increase, and $34.5 billion in net income, marking a 46% profit growth.
  • AI-driven innovations, including Gemini 2.5 and AI Overviews, fueled growth in Google Search, which generated $50.7 billion, and YouTube advertising, which rose 10% to $8.9 billion.
  • Google Cloud revenue grew 28% year-over-year to $12.26 billion, although slightly below projections, as demand for AI and cloud solutions remained strong.
  • The company announced a $70 billion share buyback program and a 5% dividend increase, signaling confidence in its financial stability and future growth prospects.
  • Alphabet continues to face significant regulatory challenges, including antitrust rulings against its search and ad businesses, with remedies trials underway and potential structural changes looming.