Google parent Alphabet ( GOOGL ) reported first-quarter revenue and profit that exceeded analysts’ expectations, sending shares higher in extended trading Thursday.
The tech titan reported revenue of $90.23 billion, up 12% year-over-year and above the analyst consensus from Visible Alpha. Net income of $34.54 billion, or $2.81 per share, compared to $23.66 billion, or $1.89 per share, a year earlier, also topping Wall Street’s estimates. Google Cloud revenue rose 28% to $12.3 billion, while Search & Other segment revenue grew 10% to $50.7 billion.
Alphabet also raised its quarterly dividend by 5% to 21 cents, and announced an additional $70 billion in stock buybacks .
Alphabet's Class A shares rose close to 5% in after-hours trading. The stock was down about 16% for 2025 through Thursday’s close.
Alphabet Reiterates Spending Plans as AI Features Expand Reach and Engagement
CEO Sundar Pichai said Search growth was driven by "engagement we’re seeing with features like AI Overviews, which now has 1.5 billion users per month" after launching in May 2024.
On the company's earnings call, Chief Business Officer Philipp Schindler said the quarter "marked our largest expansion to date for AI Overviews, both in terms of launching to new users and providing responses for more questions.”
Alphabet reiterated its plans to spend $75 billion in capital expenditures this year, most of which is expected to go toward building out the company's AI infrastructure.
“We do see a tremendous opportunity ahead of us across the organization,” CFO Anat Ashkenazi said on the company's earnings call, adding that Alphabet ended the quarter with more Cloud demand than it had capacity. The investments in AI infrastructure, “should help us have a more resilient organization, irrespective of macroeconomic conditions," Ashkenazi said.
Pichai also gave Nvidia (
NVDA
) a shoutout during the call, saying Alphabet’s relationship with the AI chipmaker “continues to be a key advantage for our customers.” Alphabet was the first cloud provider to offer certain Nvidia's Blackwell GPUs, Pichai said, and will offer its next-generation Vera Rubin chips, which are
expected in 2026
.
This article has been updated since it was first published to include additional information and reflect more recent share price values.
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