Alphabet Q1 revenue hits $90.2B; Search grows despite ChatGPT challenge

Alphabet, the parent company of Google, today announced the financial results for the quarter ended March 31, 2025. Alphabet reported revenue of $90.2 billion, a 12% increase year over year. The revenue growth was supported by various businesses including Google Search, YouTube ads, Google subscriptions, and Google Cloud.

1/ One quarter down, and 2025 already feels like a breakthrough year.

Here’s a quick Q1 update from our earnings call🧵

 

— Sundar Pichai (@sundarpichai) April 24, 2025

Despite the growing competition from OpenAI and other AI startups, Google Search continues to grow. Google Search and Services revenue increased 10% year over year to $77.3 billion. Alphabet CEO Sundar Pichai mentioned that Search saw continued strong growth and new features like AI Overviews now has 1.5 billion users per month.

YouTube also posted a strong performance with revenue of $8.93 billion, up 10.3% YoY. With YouTube Premium and Google One, Google now has 270 million paid subscriptions.

Google Cloud, Google's cloud business that competes with Microsoft Azure and AWS, posted revenue of $12.3 billion, a 28% YoY growth. This was led by growth in Google Cloud Platform (GCP), which includes AI Infrastructure and Generative AI Solutions (Gemini APIs).

Sundar Pichai, CEO, said the following regarding the quarterly results:

“We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business. Underpinning this growth is our unique full stack approach to AI. This quarter was exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achieving breakthroughs in performance and is an extraordinary foundation for our future innovation.”

Alphabet’s Board announced a decision to repurchase up to an additional $70.0 billion of stock. The board also announced a 5% increase to the dividend, resulting in a quarterly dividend of $0.21 per share.

Source

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