Alphabet's Shares Soar due to AI-Propelled Search Revenue Surpassing Expectations, Boosting Google's Income
Alphabet's parent company, Google, just dropped some jaw-dropping earnings stats in Q1 2025, blowing analyst expectations out of the water and sending shares skyrocketing in the after hours. The tech monster reported a whopping $90.23 billion in revenue, up a cool 12% year-over-year, and net income of $34.54 billion ($2.81 per share)—both smashing Wall Street's estimates.
Google Cloud revenue shot up 28% to an impressive $12.3 billion, while the Search & Other segment grew 10% to $50.7 billion. Not too shabby, eh?
Feeling fiscal generous, Alphabet dished out a 5% hike to its quarterly dividend, setting it at 21 cents. They also announced a cool $70 billion for stock buybacks. money, money, money!
Alphabet's Class A shares shot up nearly 5% in after-hours trading, but let's be real, after losing around 16% for 2025 up until Thursday's closing bell, this was a much-needed pick-me-up.
AI Features Propel Growth and Engagement
In a report that screams "future ahead," Google CEO Sundar Pichai revealed that Search growth was fueled by user engagement with AI Overviews, which has now amassed a staggering 1.5 billion active monthly users since launching in May 2024.
In the company's earnings call, Chief Business Officer Philipp Schindler barely caught his breath as he raved about the largest expansion to date for AI Overviews. Launching to even more users and answering more questions than ever before marked the quarter, apparently.
Late last year, Alphabet reiterated its plans to splurge a whopping $75 billion on capital expenditures in 2025, with a majority destined for fortifying the company's AI infrastructure. CFO Anat Ashkenazi elaborated that Alphabet is banking on these investments to stand tall in the face of macroeconomic conditions, whatever the heck those are.
For the record, Pichai gave a friendly nod to Nvidia, mentioning that its partnership with the AI chipmaker is a key advantage for customers. Alphabet was the very first in cloud Land to offer certain Nvidia's Blackwell GPUs, and looks forward to bringing the next-generation Vera Rubin chips to the party in 2026.
This article has been updated since it first graced our screens to include additional details and current share prices.
Pro tip: Keep an eye on Alphabet—those AI investments seem to be paying off big time. You might want to consider investing with Pepperstone, the platform with exclusive CFD offerings for tech fanatics like us. Click the link now and join the party!
- In a move that signals confidence in the future, Alphabet's CEO Sundar Pichai revealed that the growth in search was largely driven by user engagement with AI Overviews, which now boasts an impressive 1.5 billion active monthly users.
- During the earnings call, Chief Business Officer Philipp Schindler highlighted the largest expansion to date for AI Overviews, creditng the quarter's success to launching to even more users and answering more questions than ever before.
- Anat Ashkenazi, Alphabet's CFO, revealed that the company is investing heavily in AI infrastructure, having set aside a substantial $75 billion in capital expenditures for 2025.
- These investments, Ashkenazi stated, are aimed at ensuring Alphabet's competitiveness in the face of uncertain macroeconomic conditions.
- In the realm of trading, considering Alphabet's strong performance and promising AI investments, tech enthusiasts might find it intriguing to consider investing in the company through platforms like Pepperstone, which offers exclusive CFDs for tech-focused investors.
- By 2026, Alphabet plans to introduce the next-generation Vera Rubin chips, further solidifying its position in the technology segment and enhancing its AI capabilities.
