Revenue Development
Alphabet achieved revenue of $90.23 billion in the first quarter of 2025, which represents an increase of 12 percent compared to the previous year when revenue was $80.54 billion. This increase surpassed analysts’ expectations, who had estimated revenue at around $89.23 billion.
Profit Development
Alphabet’s net profit rose by 46 percent to $34.54 billion in the first quarter of 2025, representing a significant increase over the previous year. Earnings per share improved from $1.91 to $2.81, exceeding market expectations, which were around $2.01.
Drivers of Positive Development
A major driver of this positive development is Google’s advertising business, which has remained resilient despite competitive pressure and tariff policies. Revenue from the core segment increased by almost 10 percent to $50.7 billion. Additionally, artificial intelligence (AI) played an important role, particularly with the introduction of Gemini 2.5, an advanced AI model that has achieved groundbreaking performance improvements.
Significance for Investors
For private investors and retail investors, this development is of great significance as it shows that Alphabet continues to have strong growth potential. The company’s ability to adapt to changing market conditions and drive forward through innovations like AI makes it an attractive investment in the technology sector.
Outlook
The positive results from Alphabet could also have a positive impact on the entire technology sector, as the company is seen as a trendsetter. Investments in AI and the resilience of the advertising business suggest that Alphabet will remain an important player in the market in the future.