Google parent Alphabet (GOOG, GOOGL) reported better-than-expected first-quarter earnings, delivering a strong signal of financial resilience amid mounting regulatory pressure and macroeconomic uncertainty.
The tech giant posted earnings per share (EPS) of $2.81 on revenue of $90.2 billion, outperforming Wall Street expectations of $2.01 EPS and $89.1 billion in revenue. Compared to the same quarter last year, Alphabet saw a significant jump from $1.89 EPS and $80.5 billion in revenue.
Alphabet also announced a 5% increase in its quarterly dividend and authorized a massive $70 billion stock repurchase program, a move that sent shares up more than 3% in after-hours trading.
Google’s advertising revenue—still its bread and butter—came in at $66.8 billion, slightly above the expected $66.4 billion. Meanwhile, its cloud division, Google Cloud Platform, posted $12.2 billion in revenue, just under analysts’ $12.3 billion forecast, yet up significantly from $9.5 billion a year earlier.
These results arrive as Alphabet navigates a stormy regulatory environment. Last week, a U.S. federal judge ruled that Google holds an illegal monopoly in digital advertising, a ruling that could lead to a forced breakup of its ad business. It follows a separate antitrust ruling last year concerning its search operations.
Despite those legal setbacks, Alphabet’s strong Q1 shows that its core business remains robust, even as the broader market digests the implications of Trump’s trade tariffs and inflationary risks. Analysts warn that digital ad spend may slow in Q2 if consumer activity wanes.
Still, for now, Alphabet’s Q1 earnings and confident shareholder moves suggest the company is entering the second quarter with notable momentum—even if regulatory and geopolitical risks loom.
Image: By The Pancake of Heaven! – Own work, CC BY-SA 4.0, Link
