Alphabet Inc., the parent company of Google, announced on Thursday that its first quarter 2025 revenue increased by 12% to $90.2 billion, fueled by strong growth in its core Google operations and ongoing momentum in its cloud computing and artificial intelligence capabilities.
According to the large IT company, net income increased 46% year over year to $23.66 billion, while earnings per share increased 49% to $2.81. The operating margin increased by two percentage points to 34%, while operating income increased by 20%.
According to a section of the report, “Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each delivered double-digit growth rates, reflecting robust momentum across the business.” “Consolidated Alphabet revenues in Q1 2025 increased 12%, or 14% in constant currency, year over year to $90.2 billion.”
The Google Services division of Alphabet, which offers YouTube advertisements, subscriptions, and search, brought in $77.3 billion in revenue, a 10% increase over the previous year. The improvements were also aided by the hardware and subscription platforms of Google and YouTube.
Google Cloud revenue jumped 28 per cent to $12.3bn, with growth across core Google Cloud Platform products, AI infrastructure, and generative AI solutions.
The Chief Executive Officer of Google, Sundar Pichai, stated in the financial report, “We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business, and underpinning this growth is our unique full-stack approach to AI.
“This quarter was super exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achieving breakthroughs in performance and is an extraordinary foundation for our future innovation.
“Search saw continued strong growth, boosted by the engagement we’re seeing with features like AI Overviews, which now has 1.5 billion users per month. Driven by YouTube and Google One, we surpassed 270 million paid subscriptions. And Cloud grew rapidly with significant demand for our solutions.’’
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