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Alphabet Inc (NASDAQ:GOOG) reported first-quarter results that beat Wall Street expectations, sending its shares almost 4% higher after Wednesday’s closing bell.
The company posted revenue of $109.9 billion for the quarter ended March 31, up 22% year over year and above analyst estimates of $107.1 billion.
Earnings per share came in at $2.81, topping expectations of $2.62.
Growth was led by continued momentum in Google Cloud, where revenue increased 63% year over year to $20 billion, ahead of estimates of $18.4 billion. Alphabet attributed the acceleration to demand for enterprise AI solutions, AI infrastructure, and core Google Cloud Platform services.
Google Services, which includes search, YouTube, and subscriptions, generated $89.6 billion in revenue, up 16% from a year earlier. Within the segment, Google Search and other revenue rose 19%, while subscriptions, platforms, and devices also grew 19%, and YouTube advertising increased 11%.
Alphabet said the results marked its 11th consecutive quarter of double-digit revenue growth.
Profitability improved during the quarter. Operating income rose 30% year over year, with operating margin expanding by 2 percentage points to 36.1%.
Net income increased 81% from the prior year period, while EPS rose 82% to $5.11 on a GAAP basis. The company also recorded other income of $37.7 billion, primarily driven by unrealized gains on nonmarketable equity securities.
Alphabet CEO Sundar Pichai said the company is seeing broad AI-driven strength across its businesses, describing the quarter as a strong start to the year. He said AI investments are supporting growth across search, cloud, and consumer AI products.
Pichai said search saw strong momentum driven by AI features, with usage and queries at record levels and revenue growth of 19%. He also highlighted Google Cloud’s expansion, saying backlog nearly doubled quarter over quarter to more than $460 billion.
He added that consumer AI products had their strongest quarter to date, led by the Gemini app, while overall paid subscriptions reached 350 million across services including YouTube and Google One. Pichai also noted growing adoption of enterprise AI tools, including Gemini Enterprise, which saw 40% quarter-over-quarter growth in paid monthly active users.
On infrastructure and usage, he said the company’s models are scaling rapidly, with first-party models such as Gemini processing more than 16 billion tokens per minute via direct API use by customers, up 60% from last quarter.
Pichai also said Waymo surpassed 500,000 fully autonomous rides per week.
Alphabet announced a 5% increase to its dividend, bringing its quarterly cash dividend to $0.22 per share.
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