10-QPeriod: Q1 FY2025

Alphabet Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 25, 2025For Securities:GOOGLGOOGGOOGMGOOGN

Summary

Alphabet Inc. (GOOGL) reported strong financial performance for the first quarter of 2025, with total revenues reaching $90.2 billion, a 12% increase year-over-year. This growth was primarily fueled by a 10% rise in Google Services revenue to $77.3 billion and a significant 28% increase in Google Cloud revenue to $12.3 billion. The company also saw a substantial boost in 'Other income (expense), net,' reaching $11.2 billion, largely due to an $8.0 billion unrealized gain on non-marketable equity securities. Net income grew by 46% to $34.5 billion, resulting in diluted EPS of $2.81. Key strategic initiatives highlighted include the planned acquisition of Wiz, a cloud security platform, for $32.0 billion, expected to close in 2026, which will bolster the Google Cloud segment. Alphabet also continued its commitment to returning capital to shareholders, repurchasing $15.3 billion in stock and increasing its quarterly dividend by 5% to $0.21 per share. Despite ongoing legal and regulatory scrutiny, particularly in antitrust matters, the company demonstrated robust operational and financial health.

Financial Highlights

52 data points
Beta

Revenue

$90.23B

59.7% Gross Margin

Net Income

$34.54B

38.3% Net Margin

EPS (Diluted)

$2.81

Total Assets

$475.37B

Cash & Equivalents

$23.26B

Free Cash Flow

$18.95B

Financial Statements
Beta
Revenue$90.23B
Cost of Revenue$36.36B
Gross Profit$53.87B
R&D Expenses$13.56B
Operating Expenses$59.63B
Operating Income$30.61B
Net Income$34.54B
EPS (Basic)$2.84
EPS (Diluted)$2.81
Shares Outstanding (Basic)12.18B
Shares Outstanding (Diluted)12.29B

Key Highlights

  • 1Total revenues increased by 12% year-over-year to $90.2 billion, driven by strong performance across Google Services and Google Cloud.
  • 2Google Services revenue grew by 10% to $77.3 billion, with Search & other and YouTube ads showing significant gains.
  • 3Google Cloud revenue surged by 28% to $12.3 billion, indicating continued momentum in the enterprise sector.
  • 4Net income increased by 46% to $34.5 billion, with diluted EPS rising to $2.81.
  • 5Other income (expense), net, significantly increased to $11.2 billion, primarily due to an $8.0 billion unrealized gain on non-marketable equity securities.
  • 6Alphabet announced plans to acquire cloud security leader Wiz for $32.0 billion, further strengthening its Google Cloud offerings.
  • 7The company returned $15.3 billion to shareholders through share repurchases and increased its quarterly dividend by 5% to $0.21 per share.

Frequently Asked Questions

The substantial increase in 'Other income (expense), net' to $11.2 billion was primarily driven by an $8.0 billion unrealized gain on non-marketable equity securities. This gain is attributed to fair value adjustments related to observable transactions involving investments in private companies.

The Google Cloud segment showed strong growth, with revenues increasing by 28% year-over-year to $12.3 billion. This growth was mainly driven by Google Cloud Platform, particularly infrastructure services and AI offerings, and Google Workspace subscriptions. The segment's operating income also saw a significant increase, rising to $2.2 billion.

The acquisition of Wiz, a leading cloud security platform for $32.0 billion, is expected to significantly enhance Alphabet's Google Cloud offerings. This strategic move aims to bolster its position in the rapidly growing cloud security market, providing enterprise customers with comprehensive security solutions.

Alphabet is actively returning capital to shareholders through share repurchases and dividends. In the first quarter of 2025, the company repurchased $15.3 billion of its Class A and Class C shares. Additionally, in April 2025, the Board declared a quarterly cash dividend of $0.21 per share, representing a 5% increase from the previous quarter.