Alphabet has presented strong quarterly figures, with a 12 percent increase in revenue despite growing AI competition. The growth was broad-based, from Google Search to Cloud, with notable figures for AI and subscription services.
Alphabet, Google’s parent company, today announced its financial results for the quarter ending March 31, 2025. The company reported revenue of $90.2 billion. This represents a 12 percent increase compared to the same quarter last year. Various business units, including Google Search, YouTube advertising, Google subscriptions, and Google Cloud drove revenue growth.
Google Search continues to grow
Despite increasing competition from OpenAI and other AI startups, Google Search continues to grow. Google Search and Services revenue rose 10 percent year-on-year to $77.3 billion. CEO Sundar Pichai said that Search showed continued strong growth and that new features such as AI Overviews now have 1.5 billion monthly users.
YouTube also performed strongly, with revenue of $8.93 billion, up 10.3 percent year over year. With YouTube Premium and Google One, Google now has 270 million paid subscriptions.
Google Cloud achieved revenue of $12.3 billion, a 28 percent year-on-year increase. This growth was mainly driven by the performance of Google Cloud Platform (GCP), which includes AI infrastructure and Generative AI solutions (such as the Gemini APIs).
Exciting quarter
Commenting on the quarterly results, Sundar Pichai said he was pleased with the strong first quarter results, which he believes reflect healthy growth and momentum across the company. He emphasized that this growth was supported by the company’s unique full-stack approach to AI. He said it was an exciting quarter, which saw the launch of Gemini 2.5 – the most intelligent AI model to date – which demonstrates breakthroughs in performance and provides an extraordinary foundation for future innovations.
Alphabet’s board announced that it plans to repurchase an additional $70 billion in shares. A 5 percent dividend increase was also announced, resulting in a quarterly dividend of $0.21 per share.
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