Alphabet delivered a robust QQ1 2025 with revenue of $90.234B, marking a 12.04% year-over-year increase and a sequential decline of 6.46%, reflecting typical quarterly seasonality in advertising demand. The quarter showcased strong profitability metrics: gross profit of $53.873B and a gross margin of 59.7%, operating income of $30.606B and an operating margin of 33.9%, and net income of $34.54B with a net margin of 38.3%. Earnings per diluted share stood at $2.81, supported by a solid efficiency of capital with an operating cash flow of $36.15B and free cash flow of $18.95B.
Financial flexibility remains a key differentiator. Alphabet ended QQ1 2025 with $95.328B in cash and short-term investments and $23.264B in cash at period end, underpinned by a strong balance sheet (total assets $475.374B; total stockholders’ equity $345.267B; minimal net debt of approximately $0.3B as reported). Free cash flow generation and a sizable share repurchase program (common stock repurchased around $15.07B) emphasize capital allocation discipline in the absence of a regular dividend. The strength in net income, supported by a high EBITDA margin (~51.3%), signals durable profitability even as Alphabet continues to invest in AI, cloud infrastructure and strategic platforms.
Looking forward, management did not issue formal numeric guidance in QQ1 2025. The earnings trajectory will likely hinge on (1) advertising demand influenced by macro conditions and regulatory dynamics, (2) Google Cloud and AI-enabled product adoption, and (3) ongoing cost discipline and capital allocation efficiency. Investors should monitor cloud growth, AI-driven monetization opportunities across YouTube and Google Services, and the cadence of share repurchases as a signal of management confidence in sustained free cash flow delivery.