Google parent announces first-ever dividend; beats on sales, profit; shares soar | Reuters
Big news from the tech world — and if you’re an investor, you’ll want to pay attention. Google’s parent company, Alphabet, just dropped its Q1 2025 earnings, and let’s just say… they didn’t just meet expectations — they blew past them.
So, what happened? Let’s break it down in plain English, because there’s a lot to unpack here — and yes, it’s all very good news for shareholders.
Google Beat Earnings (and Then Some)
Here’s the headline: Alphabet reported earnings per share (EPS) of $2.81 on a whopping $90.2 billion in revenue. Analysts had predicted $2.01 EPS on $89.1 billion — so this beat was no small potatoes.
Compare that to last year’s Q1 performance of $1.89 EPS on $80.5 billion, and you can see just how strong this year’s start has been.
Google’s earnings crushed expectations.
Stock Up, Dividend Up, and a $70 Billion Buyback
Following the earnings news, Alphabet’s stock (GOOG) popped more than 3%. But it wasn’t just the earnings report causing excitement.
The company also:
- Increased its dividend by 5%
- Announced a $70 billion stock buyback authorization
For investors, that’s a triple win: strong earnings, growing payouts, and confidence from the company in its own long-term value.
How’s the Ad Business Doing?
Still solid — though there are a few things to watch.
- Google Ads revenue hit $66.8 billion, slightly above expectations.
- Google Cloud pulled in $12.2 billion, just under the $12.3 billion forecast, but still well up from $9.5 billion a year ago.
What does that mean? Despite macroeconomic noise — like trade tensions and political uncertainty — Google’s core businesses are still going strong.
Legal Headwinds Still Blowing
Here’s the not-so-great part.
Google is still dealing with antitrust fallout:
- A recent federal ruling says Google holds an illegal monopoly in online advertising.
- There’s talk it could reorganize or spin off parts of its ads business.
Plus, let’s not forget last year’s ruling against its search and ad practices. So yes — while the money looks good now, regulatory pressure isn’t going away.
What’s Next for Alphabet?
With the broader economy still in a bit of a weird place — and President Trump’s recent tariff moves rattling markets — some analysts are cautious. Barclays, for instance, pointed out a slowdown in e-commerce and potential weakness in digital ad spending for Q2.
But for now? Alphabet is looking resilient, profitable, and focused on rewarding its shareholders.
Key Takeaways
Want the quick version? Here’s what to remember:
- Alphabet crushed Q1 earnings with $2.81 EPS on $90.2B revenue.
- Stock jumped 3% on the news.
- Dividend increased 5%, plus a $70B buyback plan.
- Ad and Cloud businesses performed solidly.
- Legal battles are a concern but haven’t slowed earnings… yet.
If you’re a tech watcher or investor, this is definitely a report worth bookmarking. Google may be under pressure from regulators, but financially? It’s still firing on all cylinders.
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