- Alphabet’s Earnings Per Share (EPS) for Q1 2025 were $2.81, significantly higher than last year’s $1.89 and exceeding the estimate of $2.01.
- The company’s revenue, excluding Traffic Acquisition Costs (TAC), stood at $76.49 billion, showing a 13% increase year-over-year and surpassing the expected $75.4 billion.
- Total revenue reached $90.23 billion, a 12% rise from the previous year, beating the estimated $89.1 billion.
- Google Services revenue was reported at $77.26 billion, marking a 9.8% increase year-over-year, versus an estimate of $76.31 billion.
- Google’s advertising segment earned $66.89 billion, an 8.5% year-over-year increase, slightly above the forecast of $66.39 billion.
- Google Search & Other Revenue recorded a decrease of 6.2% quarter-over-quarter, amounting to $50.70 billion, but still exceeded the estimate of $50.3 billion.
- YouTube advertising revenue was $8.93 billion, a 10% increase from the previous year, narrowly missing the estimate of $8.94 billion.
- Revenue from Google Network was $7.26 billion, down 8.8% quarter-over-quarter, which was higher than the expected $7.13 billion.
- Google Subscriptions, Platforms, and Devices Revenue saw an 11% quarterly decline, reaching $10.38 billion, yet surpassed the forecast of $9.91 billion.
- Google Cloud revenue rose by 28% year-over-year to $12.26 billion, slightly below the estimated $12.32 billion.
- Other Bets revenue experienced a 9.1% year-over-year decline, bringing in $450 million, under the anticipated $473.9 million.
- Total TAC was reported at $13.75 billion, up 6.2% from the previous year, and slightly above the expectation of $13.66 billion.
- Operating income increased by 20% year-over-year, amounting to $30.61 billion, exceeding the estimated $28.86 billion.
- Google Services operating income rose by 17% year-over-year to $32.68 billion, surpassing the expected $30.42 billion.
- Google Cloud operating income was $2.18 billion, a significant increase from last year’s $900 million, and ahead of the estimated $1.94 billion.
- Other Bets reported an operating loss of $1.23 billion, higher than last year but greater than the estimated loss of $1.12 billion.
- The operating margin was 34%, an improvement from last year’s 32%, and above the expected 32.3%.
- Alphabet’s workforce grew by 2.7% year-over-year to 185,719 employees, slightly more than the forecasted 183,718.
- In post-market trading, Alphabet shares increased by 2.6%, reaching $163.47 with 58,245 shares traded.
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Alphabet on Smartkarma
Analysts on Smartkarma have been actively covering Alphabet, providing valuable insights and diverse perspectives on the tech giant’s strategic moves and financial performance.
John Ley‘s report delves into the volatility setup and post-release price behavior related to Alphabet’s recent earnings, highlighting the unpredictability of the current quarter due to performance and legal uncertainties.
A look at Alphabet Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Alphabet Inc., the parent company of Google, is positioned for long-term success according to its Smartkarma Smart Scores. With a high Growth score of 4 and Resilience score of 4, Alphabet is expected to continue expanding its business and adapting well to market uncertainties. This is supported by its diversified portfolio of web-based services and products that cater to both consumers and enterprises. While the Value and Dividend scores are moderate at 2, the company’s strong performance in Growth and Resilience factors bodes well for its future prospects.
Alphabet’s overall outlook remains positive, with a solid Momentum score of 3 indicating a consistent performance trend. As a leading technology company, Alphabet is well-positioned to capitalize on emerging trends and innovations in the digital landscape. The company’s strategic focus on developing cutting-edge technologies and expanding its global reach underscores its potential for sustained growth in the long run. With a strong foundation in search, advertising, and software solutions, Alphabet is set to maintain its position as a key player in the tech industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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