Alphabet’s financial results for the March 31, 2025, quarter were released on April 24. Better-than-expected results will help the stock price reclaim lost ground.

The Alphabet stock price is up 3% in the opening hours of trade today. Google’s recent stock performance showed a lack of investor interest as the price has slumped 20% in 3 months and 16% YTD.

Alphabet, the parent company of Google, announced operating income for the first quarter of $30.6 billion on Thursday, much above the $28.7 billion Wall Street had predicted.

In Q1 2025, Alphabet’s revenues climbed 12% year on year to $90.2 billion. Google Search, YouTube advertisements, Google subscriptions, platforms and devices, and Google Cloud all experienced double-digit growth.

According to CEO Sundar Pichai, Google Search saw continued strong growth sustained by users’ interaction with its AI features. According to Pichai, YouTube and Google One are the company’s main drivers of its current 270 million+ premium subscriptions. In Search, Google saw continued double-digit revenue growth with over 1.5 billion users per month in AI Overviews.

“Nearly a year after we launched AI Overviews in the U.S., we continue to see that usage growth is increasing as people learn that Search is more useful for more of their queries. So we’re leaning in heavily here, continuing to roll the feature out in new countries, to more users, and to more queries,” said Pichai in the conference call.

Artificial intelligence-generated summaries of search results, known as AI Overviews, are displayed above conventional search results on Google Search.

AI Overviews that appear in Google Search results are the system’s generative responses. AI Overviews show links to resources that support the information in the snapshot, and explore the topic further. Google’s systems automatically determine which links appear.

Gemini models are currently used in all 15 of Google’s products, which have 500,000 users. Two examples of how Google is putting the AI in people’s hands are the Android and Pixel, which make it easy to use AI for a variety of tasks simply by using voice, camera, or screenshot.

But have Trump tariffs impacted Google’s business? This cannot be determined as Alphabet does not issue Guidance reports, making it unclear how its business was affected by President Trump’s tariff rollout and the turbulence following their announcement.

Alphabet’s sales increased from $80.54 billion to $90.23 billion, a 12% increase. Experts anticipated $89.18 billion. In the first quarter, net income was $34.54 billion, or $2.81 per share, as opposed to $23.66 billion, or $1.89 per share, in the same quarter last year. FactSet reports that analysts anticipated $2.01 per share.

On April 23, 2025, Alphabet’s Board of Directors granted the company the authority to repurchase up to an additional $70.0 billion of its Class A and Class C shares.

The dividend payments for Class A, Class B, and Class C shares totaled $2.4 billion for the three months ending March 31, 2025.

Alphabet’s Board of Directors has announced a 5% increase in its quarterly cash dividend. The dividend is payable on June 16, 2025 to stockholders of record for each of the company’s Class A, Class B, and Class C shares as of June 9, 2025