Alphabet Inc., the parent company of Google, has reported impressive financial results for the first quarter of 2025, surpassing Wall Street’s expectations. These strong numbers have led to a significant increase in the stock in after-hours trading, which is of great importance to investors.
Financial Highlights
- Revenue: Alphabet’s revenue rose by 12% in the first quarter of 2025 to $90.2 billion, reflecting a 14% growth in constant currencies. This exceeded expectations, which were around $89.10 billion.
- Profit: Net profit increased by 46%, and earnings per share (EPS) rose by 49% to $2.81. The actual profit was $34.54 billion, significantly higher than the previous year’s figures.
- Google Services: Revenue from Google Services increased by 10% to $77.3 billion, driven by strong performances in Google Search, YouTube advertising, and Google subscriptions.
- Google Cloud: Revenue from Google Cloud grew by 28% to $12.3 billion, led by growth in the Google Cloud Platform (GCP), AI infrastructure, and generative AI solutions.
Market Development and Investor Reaction
Alphabet’s strong performance led to a rise in the stock in after-hours trading, indicating investor confidence in the company’s future development. Alphabet’s valuation levels are considered attractive, as the price-to-earnings ratio is below the long-term average. This could attract further investments, especially given the positive outlook for the coming years.
Outlook
For 2025, Alphabet has planned capital expenditures of $75 billion, indicating a strong investment in technologies such as AI. These investments could further accelerate the company’s growth, particularly in the areas of cloud computing and generative AI solutions. Analysts expect revenue growth of about 12% for the full year and double-digit growth in the next two years.
Overall, Alphabet’s quarterly numbers reflect a robust business development that encourages investors and has increased interest in the stock.