GOOG Stock Surges on Better-Than-Expected First-Quarter Results
Shares of GOOG stock climbed sharply following Alphabet’s Thursday evening release of its first-quarter google earnings report. The parent company of Google and YouTube reported revenue of $90.23 billion, surpassing analyst estimates of $89.12 billion, and delivered earnings per share of $2.81 versus forecasts of $2.01. In after-hours trading, the stock rose as much as 4%, reflecting renewed investor confidence in Alphabet’s core businesses.
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Alphabet’s google earnings revealed that its Search and other segment generated $50.7 billion—up 9.8% year-over-year—driven in part by AI Overviews, which now boasts 1.5 billion monthly users (up from 1 billion in October). Overall advertising revenue reached $66.89 billion, an 8.5% increase, with YouTube ads contributing $8.93 billion, just shy of the $8.97 billion analysts expected. Google Cloud revenue came in at $12.26 billion—nearly matching the StreetAccount estimate of $12.27 billion—and demonstrated 28% year-over-year growth with margins expanding to 17.8% from 9.4% a year prior.
Key metrics from the quarter:
- Revenue: $90.23 billion vs. $89.12 billion est.
- EPS: $2.81 vs. $2.01 est.
- YouTube Ad Revenue: $8.93 billion vs. $8.97 billion est.
- Google Cloud: $12.26 billion vs. $12.27 billion est.
- Traffic Acquisition Costs: $13.75 billion vs. $13.66 billion est.
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Alphabet’s Financial Strength and Strategic Moves
Net income jumped 46% to $34.54 billion, or $2.81 a share, up from $23.66 billion, or $1.89 a share, a year earlier—boosted by $8 billion in unrealized gains on non-marketable equity securities. Meanwhile, the “Other Bets” segment, which includes Waymo and Verily, generated $450 million in revenue (down from $495 million) and posted a $1.23 billion loss.
Alphabet also announced its largest-ever acquisition: a $32 billion cash purchase of Wiz to strengthen Google Cloud’s security offerings. CEO Sundar Pichai emphasized on the earnings call that the deal will support multi-cloud adoption, and CFO Anat Ashkenazi confirmed plans for approximately $75 billion in 2025 capital expenditures, subject to timing fluctuations. The board further authorized a new $70 billion share repurchase program, mirroring last year’s move.
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Navigating Macroeconomic Headwinds
Despite strong top-line growth, Google’s leadership acknowledged external challenges. Business chief Philipp Schindler noted that President Trump’s decision to end the de minimis trade exemption on May 2 will “cause a slight headwind” for Ads revenue, particularly from Asia-Pacific retailers like Temu and Shein. Still, Schindler expressed confidence:
“We have a lot of experience managing through uncertain times, and we focus on providing deep insights into changing consumer behavior.”
He highlighted that finance, retail, health care, and travel remain among Google’s top advertising industries, underpinning continued revenue growth even as competition in AI and shifting trade policies intensify.
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Final Thoughts
Alphabet’s latest googl earnings report underscores the strength of google stock price momentum, fueled by resilient search and ad units and rapid cloud-segment expansion. The company’s strategic acquisition of Wiz and generous share-repurchase plans signal a commitment to long-term growth and shareholder value. As Alphabet navigates macroeconomic pressures, investors will be watching for sustained performance in AI-driven products and the evolving cloud business.
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