Alphabet delivers blowout Q1 earnings on strength in search, cloud units

Investing.com -- Google-parent Alphabet reported Thursday blowout first-quarter results, underpinned by cloud business growth and ongoing strength in its search business despite the impact of tariffs and rising competition from generative AI.

Alphabet (NASDAQ: GOOGL) rose more than 3% in recent afterhours trading following the report.

For the three months ended Mar. 31, the internet search giant reported earnings of $2.81 per share on revenue of $90.23 billion. That compared with expectations for income of $2.02 a share on revenue of $89.32B.

Google search and other revenue, which is exposed to China tariffs and competition for ad-dollars from generative AI, rose to $50.7B in Q1 from $46.16B a year earlier, just ahead of estimates for $50.5B

"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," the company said.

Cloud revenue rose to $12.26B, up from $9.57B a year earlier, in line with estimates.

YouTube ads revenue climbed to $8.93B from $8.09B.

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