Alphabet Inc. (NASDAQ: GOOG) shares experienced a significant surge, jumping 6% in premarket trading on Friday, April 25, 2025, following the release of its first-quarter earnings report. The tech giant surpassed analyst expectations for both revenue and profit, fueling investor optimism.
The company's revenue reached $90.23 billion, marking a 12% increase compared to the same period last year. Net income soared to $34.54 billion, or $2.81 per share, exceeding Wall Street estimates. Google Cloud revenue demonstrated strong growth, rising 28% to $12.3 billion, while Search & Other revenue increased by 10% to $50.7 billion.
In addition to the impressive financial results, Alphabet announced a 5% increase in its quarterly dividend, bringing it to 21 cents per share. The company also authorized an additional $70 billion in stock buybacks, signaling confidence in its future performance. CEO Sundar Pichai highlighted the growth in Search, driven by AI Overviews, which are now utilized by 1.5 billion monthly users.
CFO Anat Ashkenazi noted that strong demand for Google Cloud is currently exceeding the company's capacity, indicating further growth potential in this sector. The company reiterated its plans to spend $75 billion in capital expenditures this year, with most of it going towards building out the company's AI infrastructure.