Google parent posts better-than-expected revenue and EPS, driven by YouTube ads and Google Cloud
Alphabet (GOOGL), the parent company of Google and YouTube, reported stronger-than-expected first-quarter earnings on Thursday, sending a positive signal to investors amid ongoing scrutiny of the digital advertising and cloud markets.
For the quarter ending March 31, Alphabet posted revenue of $90.23 billion, beating analysts’ expectations of $89.12 billion, according to LSEG data. Earnings per share came in at $2.81, well above the $2.01 expected, marking a significant outperformance.
Key business segments also delivered solid results. YouTube advertising revenue reached $8.97 billion, as reported by StreetAccount, reflecting continued momentum in video-based digital advertising. Meanwhile, Google Cloud revenue climbed to $12.27 billion, showcasing the company’s growing strength in the enterprise cloud computing space.
Traffic acquisition costs (TAC), which represent payments made to partners that direct traffic to Google, came in at $13.66 billion, in line with expectations and suggesting steady control over one of Alphabet’s biggest expense categories.
The strong quarter reflects Alphabet’s resilience amid macroeconomic uncertainty and fierce competition across advertising and AI-driven cloud services. The better-than-expected performance, particularly in high-growth areas like YouTube and Google Cloud, underscores the company’s continued evolution beyond its traditional search business.
The upbeat results also suggest that Alphabet is capitalizing on growing demand for digital content and enterprise AI tools, giving it an edge in both consumer and business markets.
Alphabet’s shares traded higher in after-hours trading following the earnings announcement. Investors will now be watching closely for guidance on the company’s AI integration strategy and how it plans to maintain momentum across its business lines throughout 2025.
You might like this article:Intel to Cut 20% of Workforce in Major Restructuring Drive
