Google parent Alphabet (GOOG, GOOGL) announced its fiscal first quarter earnings on Thursday, beating on the top and bottom lines. The company also said it is boosting its dividend by 5% and authorized another $70 billion in stock buybacks.
Google’s stock price jumped more than 3% on the news.
For Q1, Google reported earnings per share (EPS) of $2.81 on revenue of $90.2 billion. Analysts were expecting EPS of $2.01 on revenue of $89.1 billion, according to Bloomberg consensus estimates.
The company reported EPS of $1.89 on revenue of $80.5 billion during the same period last year.
Google’s advertising revenue topped out at $66.8 billion versus expectations of $66.4 billion. Google Cloud Platform revenue was $12.2 billion versus expectations of $12.3 billion. The segment saw $9.5 billion in revenue in Q1 2024.
Google is among the first Big Tech companies to report its earnings since President Trump’s “Liberation Day” tariff plan sent markets into a tailspin and raised the specter of a possible economic recession, something analysts say could impact second half earnings.
“We have seen some transaction velocity in e-commerce drop off of late, and given the macro noise, would expect digital ads to weaken in 2Q,” Barclays analyst Ross Sandler wrote in an April 8 investor note.
Google is also contending with the fallout from its twin antitrust losses. Last week, a US federal judge found that Google holds an illegal monopoly over the online advertising market, which could force the company to sell off or reorganize its ads business.
The loss comes less than a year after a judge found that Google’s search and ad businesses also violated antitrust laws.
Google will report its Q1 earnings after the bell on Thursday. (Vuk Valcic/SOPA Images/LightRocket via Getty Images) · SOPA Images via Getty Images
Sign up for Yahoo Finance’s Week in Tech newsletter. · yahoofinance
Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.
Click here for the latest technology news that will impact the stock market
Read the latest financial and business news from Yahoo Finance
