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Alphabet’s GOOGL first-quarter 2025 earnings of $2.81 per share beat the Zacks Consensus Estimate by 39.11%. The figure grew 48.7% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Revenues of $90.234 billion increased 12% year over year (14% at constant currency).
Net revenues, excluding total traffic acquisition costs (“TAC”) (the portion of revenues shared with Google’s partners and the amount paid to distribution partners and others who direct traffic to Google’s website), were $76.486 billion, which surpassed the consensus mark by 1.27%. The figure rose 13.2% year over year.
TAC of $13.784 billion rose 6.2% year over year.
Alphabet Inc. Price, Consensus and EPS Surprise
Alphabet Inc. price-consensus-eps-surprise-chart | Alphabet Inc. Quote
GOOGL shares were up roughly 4% in pre-market trading on Friday, reflecting strong results. Google Cloud revenues surged 28.1% year over year to $12.260 billion and accounted for 13.6% of the quarter’s total revenues. The figure beat the Zacks Consensus Estimate by 0.85%.
Google Cloud revenue growth benefited from strong GCP growth and a solid demand for artificial intelligence (AI) infrastructure and generative AI solutions.
GOOGL’s Services Ride on Search & YouTube
Google Services revenues increased 9.8% year over year to $77.264 billion and accounted for 85.6% of total revenues. The figure beat the Zacks Consensus Estimate by 1.56%.
Google advertising revenues rose 8.5% year over year to $66.885 billion and accounted for 74.1% of total revenues. The figure surpassed the consensus mark by 0.9%.
Search and other revenues grew 9.8% year over year to $50.702 billion, surpassing the Zacks Consensus Estimate by 0.83%. Search and other revenues accounted for 65.6%, 75.8% and 56.2% of Google Services, Google Advertising and total revenues, respectively. YouTube’s advertising revenues improved 10.3% year over year to $8.972 billion, which beat the consensus mark by 0.31%.
Alphabet is leveraging AI to boost search dominance with the launch of Gemini 2.5. Search revenues benefited from continued strong growth, boosted by the engagement with features like AI Overviews, which now has 1.5 billion users per month.
However, Google Network revenues decreased 2.1% year over year to $7.256 billion but beat the consensus mark by 2.69%.
Google subscriptions, platforms and devices revenues, formerly known as Google Other revenues, were $10.396 billion in the first quarter, up 18.8% year over year. The figure beat the consensus mark by 4.12%.
Other Bets’ revenues were $450 million, down 9.1% year over year, and accounted for 0.5% of the first-quarter revenues. The figure missed the consensus mark by 6.75%.