Alphabet Q1 earnings report 2025

Alphabet, the parent company of Google and YouTube, reported stronger-than-expected first-quarter growth on Thursday after the bell. Shares rose more than 5% in after-hours trading.

Here’s how the company did, compared with estimates from analysts polled by LSEG:

• Revenue: $90.23 billion vs. $89.12 billion expected
• Earnings per share: $2.81 vs. $2.01 expected

Wall Street is also watching several other numbers in the report:

• YouTube advertising revenue: $8.93 billion vs. $8.97 billion, according to StreetAccount
• Google Cloud revenue: $12.26 billion vs. $12.27 billion, according to StreetAccount
• Traffic acquisition costs (TAC): $13.75 billion vs. $13.66 billion, according to StreetAccount

Alphabet’s search and advertising units are still showing strong growth despite artificial intelligence competition heating up, according to its first-quarter earnings report.

The company’s overall revenue grew 12% year over year, higher than the 10% Wall Street expected.

Google’s YouTube advertising revenue came in just short of analysts’ expectations at $8.93 billion. Overall advertising brought in $66.89 billion, up 8.5% from the year prior.

The company’s “Search and other” segment reported $50.7 billion, up 9.8% from $46.16 billion a year prior. Alphabet said AI Overviews, its AI tool placed at the top of Google’s search results page, now has 1.5 billion users per month, up from one billion in October.

Philipp Schindler, Google’s business chief, said the company is “not immune to the macro environment,” adding that President Donald Trump’s decision to end the de minimis trade loophole next month will “cause a slight headwind to our Ads business in 2025, primarily from APAC-based retailers.”

The de minimis trade exemption allows shipments worth less than $800 to enter the U.S. duty-free, a key part of the businesses of Chinese e-commerce companies Temu and Shein, which have previously spent extensively in online ads. The exemption is slated to close on May 2.

“I would say we have a lot of experience in managing through uncertain times, and we focus on helping our customers by providing deep insights into changing consumer behavior that is relevant to their business,” Schindler said.

Finance, retail, health care and travel were among the top industries advertising with Google, helping revenue growth, Schindler said.

Alphabet’s net income increased 46% to $34.54 billion, or $2.81 per share, from $23.66 billion, or $1.89 per share, a year earlier. The company said that included $8 billion in unrealized gains on its nonmarketable equity securities related to Alphabet’s investment in a private company.

According to LSEG, Alphabet’s adjusted earnings, excluding that gain, was $2.27 per share, which exceeded analysts’ estimates.

The company reported revenue of $12.26 billion for its cloud computing business, which was slightly below analysts’ expectations of $12.27 billion, according to StreetAccount. But the cloud unit saw its revenue increase 28% year over year, and its…