Alphabet Q1 Revenue Rises 22% to $109.9B, EPS $5.11 Beats Estimate
Alphabet reported Q1 adjusted EPS of $5.11 versus $2.62 forecast and revenue of $109.9 billion, up 22% year over year. Google Cloud revenue jumped 63% to $20 billion with backlog topping $460 billion, while operating margin expanded to 36.1% and net income surged 81%.
1. Earnings Beat and Revenue Growth
Alphabet posted adjusted Q1 earnings per share of $5.11 versus a $2.62 estimate and revenue of $109.9 billion, representing 22% year-over-year growth. Shares rose 4.1% as strong Search performance and AI-driven gains drove results.
2. Cloud Division Expansion
Google Cloud revenue increased 63% to $20 billion, propelled by enterprise AI tool adoption and infrastructure demand. The segment’s backlog nearly doubled from the prior quarter to over $460 billion, signaling continued customer commitments.
3. Profitability, Net Income and Subscriptions
Operating margin widened to 36.1%, reflecting improved efficiency alongside revenue gains. Net income soared 81% aided by a $37.7 billion non-marketable equity gain, while total paid subscriptions reached 350 million and Gemini Enterprise users grew 40% quarter-over-quarter.
4. Dividend Increase and Q2 Outlook
A 5% quarterly dividend increase raised the payout to $0.22 per share, underscoring financial strength. Investor focus will shift to second-quarter commentary on advertising demand, cloud growth and capital expenditure trends.