Alphabet Inc. delivered an impressive performance in the first quarter of 2025, fueled by broad-based growth across its core businesses and accelerating demand for its AI and cloud offerings. Total revenue rose 12% year-over-year to $90.2 billion (14% in constant currency), underscoring the company’s resilience and expanding digital footprint.

Revenue from Google Services climbed 10% to $77.3 billion, driven by continued gains in Google Search, YouTube ads, and subscriptions, platforms, and devices, which grew to $50.7 billion, $8.9 billion, and $10.4 billion, respectively. Total Google advertising revenue reached $66.9 billion, up from $61.7 billion a year earlier.

A standout was Google Cloud, which surged 28% year-over-year to $12.3 billion, reflecting robust enterprise demand for GCP, AI infrastructure, and generative AI solutions. Cloud operating income more than doubled to $2.2 billion, highlighting ongoing margin expansion.

Alphabet’s profitability also saw a marked improvement. Operating income jumped 20% to $30.6 billion, with the operating margin widening to 34% from 32%. Net income soared 46% to $34.5 billion, while diluted earnings per share increased 49% to $2.81, up from $1.89 in the same quarter last year.

Shareholder returns remained a priority, with Alphabet raising its quarterly cash dividend by 5% to $0.21 per share and announcing a new $70 billion stock repurchase authorization.

The company’s paid subscriptions surpassed 270 million, supported by continued growth in YouTube Premium and Google One. On the innovation front, Alphabet launched Gemini 2.5, its most advanced AI model to date, and reported strong adoption of AI-powered features like AI Overviews, now reaching 1.5 billion users monthly.

While Other Bets revenue declined to $450 million, the segment’s loss widened to -$1.2 billion, up from -$1.0 billion last year. Nonetheless, Alphabet recorded an $8.0 billion unrealized gain from a private equity investment, contributing to other income.

Finally, Alphabet’s operating cash flow came in at $36.2 billion, with $23.3 billion in cash and cash equivalents at quarter-end, reinforcing its robust financial position.

Overall, Alphabet’s Q1 results showcased strong top- and bottom-line growth, propelled by leadership in cloud and AI, and reaffirmed its position at the forefront of digital transformation.