Mountain View, California – Alphabet, the parent company of Google, released its first-quarter earnings on Thursday, marking the first of the trillion-dollar U.S. tech giants to report financial results for the quarter. The period was marked by economic uncertainties that could potentially impact Google’s advertising-driven business.
Alphabet exceeded analyst expectations by bringing in $90.2 billion in revenue for the first quarter, with $2.81 diluted earnings per share. This marked a 12% increase in revenue from the same period last year, and a 49% growth in net income. Google’s search unit generated $50.7 billion in sales, with the Google cloud division bringing in $12.3 billion.
Following the earnings release, Google’s stock surged by about 4% in after-hours trading. This positive momentum was also reflected in an increase in the quarterly cash dividend and a new $70 billion stock buyback program announced by the company.
Investors and analysts are eagerly awaiting Alphabet’s conference call with management to gain insights into how the current economic landscape may impact the tech giant’s future performance. CEO Sundar Pichai’s remarks during the call are anticipated to address concerns such as the impact of tariffs and regulations on Google’s operations.
Despite facing challenges from tariff-related ad spend declines, Google appears to have somewhat less exposure to the current economic uncertainties compared to its competitors. The company is navigating through a complex environment that includes regulatory hurdles and concerns about potential disruptions in online search due to generative AI advancements.
Legal challenges, such as ongoing antitrust cases and monopoly probes, add another layer of complexity to Google’s operations. However, the company remains a key player among West Coast tech giants, contributing to the overall market value of trillion-dollar companies alongside industry leaders like Apple, Microsoft, Nvidia, Amazon, and Meta.
As the tech industry continues to navigate through economic uncertainties and regulatory challenges, investors are closely monitoring the performance of key players like Alphabet. The upcoming earnings reports from other tech giants will provide further insights into how the sector is weathering the current economic climate.
