Alphabet Inc., the parent company of Google, reported robust financial results for the first quarter of 2025, with revenue rising by 12% year-over-year to $90.2 billion. The strong performance was attributed to continued growth across Google’s core businesses, including Search, YouTube, cloud services, and artificial intelligence offerings.
Net income for the quarter surged by 46% to $23.66 billion, while earnings per share (EPS) increased by 49% to $2.81. Operating income rose by 20%, with the operating margin expanding by two percentage points to reach 34%.
In a statement accompanying the results, the company noted, “Consolidated Alphabet revenues in Q1 2025 increased 12%, or 14% in constant currency, year-over-year to $90.2 billion, reflecting robust momentum across the business. Google Search & other, YouTube ads, Google subscriptions, platforms and devices, and Google Cloud each delivered double-digit growth rates.”
Alphabet’s Google Services segment—which includes Search, YouTube advertising, and subscription services—generated $77.3 billion in revenue, marking a 10% increase from the previous year. Growth was also driven by performance in YouTube, as well as Google’s hardware and subscription-based platforms.
Meanwhile, Google Cloud reported a 28% year-over-year increase in revenue, reaching $12.3 billion. The growth was fueled by demand for its core cloud platform offerings, AI infrastructure, and generative AI solutions.
Commenting on the quarter’s performance, Sundar Pichai, Chief Executive Officer of Google, said, “We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business. Underpinning this growth is our unique full-stack approach to AI.”
Pichai highlighted several key developments, including the launch of Gemini 2.5—described as Google’s most advanced AI model to date. “This quarter was super exciting as we rolled out Gemini 2.5, which is achieving breakthroughs in performance and serves as an extraordinary foundation for future innovation,” he said.
He also noted continued strength in Search, aided by user engagement with AI Overviews, which now serves 1.5 billion users monthly. Additionally, Alphabet surpassed 270 million paid subscriptions, led by YouTube and Google One. “Cloud grew rapidly with significant demand for our solutions,” Pichai added.
Alphabet’s strong first-quarter results underscore its strategic emphasis on artificial intelligence and cloud computing as key drivers of future growth.
