Alphabet Reports Strong First Quarter 2025 Results, Amid Intense AI Competition And Economic Uncertainty
Alphabet, the mother company of Google and Youtube, reported robust results of the first quarter for 2025, in a context of intensification of competition and economic concerns of AI.
The technology giant has exceeded Wall Street’s expectations, by showing revenues of $ 90.23 billion, compared to $ 89.12 billion expected.
Below you will find the company’s financial strengths of the company
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Profit by action: $ 2.81, guaranteeing expectations of $ 2.01.
Youtube advertising income: 8.93 billion dollars, slightly lower than forecasts of $ 8.97 billion.
Income on Google Cloud: 12.26 billion dollars, marginally under 12.27 billion dollars expected, but up 28% in annual shift, drawn by the demand for IA infrastructure and AI -generating solutions.
Traffic acquisition costs (TAC): $ 13.75 billion, slightly higher than $ 13.66 billion expected.
Operating result: Up 20%, the operating margin increasing 2 points to 34%.
Net income: Damped by 46% to 34.54 billion dollars, BPA increasing by $ 2.81 by $ 2.81.
Corporate segment
Google services: Income increased by 10% to 77.3 billion dollars, fueled by high performance in Google Search, YouTube Ads, and subscriptions, platforms and devices. IA glimps, now serving 1.5 billion monthly users, stimulated research commitment. YouTube and Google One led subscriptions beyond 270 million.
Google Cloud: Revenues increased from 28% to 12.3 billion dollars, reflecting the growth of the Google Cloud platform, the IA infrastructure and generative IA solutions.
Commenting on the report, the CEO of Alphabet Sundar Pichai expressed his satisfaction with the results, emphasizing the company’s focusing strategy.
He said,
“We are satisfied with our strong results of the first quarter, which reflect healthy growth and momentum through the company. Under the growth of this growth is our unique approach to the complete AI battery. This trimester was super exciting because we deployed Gemini 2.5, our most intelligent AI model, which achieves breakthroughs in performance and is an extraordinary foundation for our future innovation. Research has seen strong growth continuously, stimulated by the The commitment we see with features such as IA previews, which now has 1.5 billion users per month. Pushed by YouTube and Google One, we have exceeded 270 million paid subscriptions. The cloud increased quickly with a asks for our solutions. »»
Sundar Pichai also mentioned “efficiency” as a way to try to keep a lean business to withstand potential macroeconomic challenges.
“If the macro environment should change and become more volatile downwards, how should investors think of investments that are essential this year, almost fixed in the wild, compared to the place where there could be more flexibility?” Asked Eric Sheridan from Goldman Sachs.
Pichai replied that the company plans to continue to consolidate the teams and reduce costs elsewhere, which, according to him, should help the company have a more resilient organization, whatever the macroeconomic conditions.
Alphabet, which has declared stronger revenues than expected for its first quarter of 2025, faces an online advertising market which is in advance because of the concerns about the way in which Trump prices will affect the economy and commercial spending.
The technology giant will probably be affected by the materials necessary for technical infrastructure such as the data centers it uses to supply the efforts of artificial intelligence. It could also see used effects on the advertising withdrawal of budgetary constraints.
Philipp Schindler, Google’s business manager, said that the company was “not immune to the macro environment”, adding that President Donald Trump’s decision to put an end to the escape from Minimis next month “will cause a slight wind from our advertising activities in 2025, mainly retailers based on APAC”.
Ahead
The results of the first trimester of alphabet highlight its resilience in a landscape of competitive AI and a difficult economic environment. With significant investments in 75 billion dollars planned for 2025 and the emphasis on operational efficiency, the company is well placed to maintain research, cloud and subscriptions while addressing macro uncertainties.
