Alphabet GAAP EPS of $2.81 beats by $0.80, revenue of $90.23B beats by $1.08B
Alphabet Inc., Google’s parent company, delivered a stellar Q1 2025 earnings report, showcasing robust financial performance. Revenue reached $90.23 billion, up 12% from $80.54 billion in Q1 2024, exceeding analyst expectations of $89.1 billion.
Diluted earnings per share soared 49% to $2.81, surpassing forecasts of $2.01, driven by an $8b unrealised gain on non-marketable securities (stocks/investments). Operating income climbed 20% to $30.61 billion, with the operating margin expanding to 33.9% from 31.6%, reflecting disciplined cost management despite a 14% rise in R&D spending to $13.56 billion.
Google Cloud was a standout, with revenue up 28% to $12.26 billion and operating margin nearly doubling to 17.8% from 9.4%. Alphabet announced a $70 billion share buyback programme and a $0.21 per share dividend, reinforcing shareholder returns.
Capital expenditure was confirmed at $75 billion for 2025, a 43% increase from $52.5 billion in 2024, primarily for AI-driven infrastructure like servers and data centres, with $16–18 billion earmarked for Q1 alone. CEO Sundar Pichai attributed the strong results to Alphabet’s “unique full stack approach to AI,” highlighting breakthroughs with Gemini 2.5 and AI Overviews, which now serves 1.5 billion monthly users. CFO Anat Ashkenazi emphasised sustained investment in technical infrastructure to bolster cloud and AI capabilities, noting that costs grew slower than revenue, enhancing efficiency
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