Alphabet Inc. experienced a 4.63% surge in its stock value during after-hours trading subsequent to unveiling robust financial performance in its Q1 2025 earnings report that largely beat expectations.
The company reported substantial growth in revenue, particularly in its Cloud division, with a 12% year-over-year increase and notable profitability expansion.
Alphabet’s Q1 results showcased robust financial performance, including a 12% year-over-year increase in total revenue to $90.23 billion from $80.54 billion in the corresponding period of the prior year. The company reported a 20% surge in operating income to $30.61 billion and an impressive 46% rise in net income to $34.54 billion. Diluted earnings per share also saw a significant increment of 49% to $2.81 from $1.89 in Q1 2024.
Alphabet’s Q1 financial highlights included:
- Earnings Per Share (EPS) up by 49% year-on-year to $2.81 compared to an expected $2.01
- Revenue increased by 12% year-on-year to $90.23 billion, exceeding the expected $89.15 billion
- Strong performances in Google Services, Google Search, YouTube Ads, Subscriptions & Devices
- Notable uptick in Operating Profit by 141.9% year-over-year
- Free Cash Flow surge of 12.6% year-over-year to $18.95 billion
- Operating Margin climbed to 34%, up 2 percentage points from the prior year
- Approved $70 billion share buyback
Alphabet demonstrated strength across various segments such as AI, Cloud, Ads, and subscriptions, reflecting impressive margin growth and surpassing earnings per share projections, indicating a positive outlook.
Within Alphabet’s array of assets, Google Cloud is a top performer, boasting a remarkable 28% year-over-year revenue increase to $12.26 billion. The segment’s operational efficiency was equally noteworthy, with its operating margin rising to 17.8% from 9.4%, highlighting substantial profitability advancements in this pivotal growth area.
