Alphabet Inc., the parent company of Google, has reported impressive first-quarter results, exceeding market expectations with revenue of $90.23 billion and earnings per share of $2.81.
This robust performance was driven by significant growth in its digital advertising and cloud computing segments, leading to a notable increase in the company’s stock price. Shares of Alphabet rose as much as 4% in after-hours trading, reflecting investor optimism about the company’s prospects.
The revenue growth of 12% year-over-year was primarily fueled by Google’s advertising business, which generated $66.89 billion, marking an 8.5% increase from the previous year. This growth was slightly above analysts’ expectations, demonstrating the resilience of the digital advertising market despite economic uncertainties. Additionally, Google Cloud reported a 28% rise in revenue to $12.26 billion, underscoring the company’s success in expanding its cloud services.
YouTube’s advertising revenue also saw a significant increase, rising 10.3% to $8.93 billion. The company’s “Search & Other” segment, which includes Google Search, grew by 9.8% to $50.7 billion. These figures highlight the continued strength of Google’s core businesses and its ability to adapt to changing market conditions.
Alphabet also announced a $70 billion stock repurchase program and a 5% increase in its dividend, further boosting investor confidence. The company’s strong operational efficiency, with an expanded operating margin, contributed to a substantial increase in net income, reaching $34.54 billion for the quarter.
This performance demonstrates Alphabet’s ability to navigate challenging economic conditions while maintaining its position as a leader in the tech industry.