Google Reports 12% Revenue Growth, Reaching $90.2 Billion in Q1 2025

Alphabet Inc., Google’s parent company, reported a 12% increase in revenue for the first quarter of 2025, reaching $90.2 billion. This growth was fueled by strong performance in its core Google businesses, along with continued progress in cloud computing and artificial intelligence offerings.

The tech giant reported a 20 percent increase in operating income, with a two percentage point expansion in operating margin to 34 percent. Net income experienced a significant surge of 46 percent year-over-year, reaching $23.66bn, and earnings per share rose by 49 percent to $2.81.

Part of the report stated, “Consolidated Alphabet revenues in Q1 2025 increased 12 per cent, or 14 per cent in constant currency, year over year to $90.2bn reflecting robust momentum across the business, with Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each delivering double-digit growth rates.”

Alphabet’s Google Services unit, which includes Search, YouTube ads, and subscriptions, generated $77.3bn in revenue, up 10 per cent from a year earlier. YouTube and Google’s hardware and subscription platforms also contributed to the gains.

Google Cloud revenue jumped 28 per cent to $12.3bn, with growth across core Google Cloud Platform products, AI infrastructure, and generative AI solutions.

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The Chief Executive Officer of Google, Sundar Pichai, stated in the financial report, “We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business, and underpinning this growth is our unique full-stack approach to AI.

“This quarter was super exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achieving breakthroughs in performance and is an extraordinary foundation for our future innovation.

“Search saw continued strong growth, boosted by the engagement we’re seeing with features like AI Overviews, which now has 1.5 billion users per month. Driven by YouTube and Google One, we surpassed 270 million paid subscriptions. And Cloud grew rapidly with significant demand for our solutions.’’