Alphabet Q1 2025: Google reports $66.8 billion in ad revenue

Alphabet Inc., the parent company of Google, posted strong results for the first quarter of 2025, with ad revenue driving much of the momentum. Google’s advertising business led the company’s growth in the first quarter, pulling in $66.8 billion, up 8.5% from a year earlier. Within this, revenue from the “Google Search & Other” segment stood at $50.7 billion, reflecting a 9.8% increase over the $46.16 billion reported in Q1 2024.

The company reported total revenue of $90.23 billion, marking a 12% rise compared to the same period last year. Net profit jumped 46% year-on-year to $34.54 billion. YouTube's advertising revenue rose 10.3% year-on-year to $8.93 billion in the first quarter. 

Outside its core ad business, Google Cloud brought in $12.26 billion in revenue for the quarter, a 28% increase from the previous year. Operating margins for the cloud unit improved to 17.8%, reflecting increased adoption of AI-focused services. Alphabet also reported growth in its “Other Bets” segment and subscription offerings, with more than 270 million paid users across services like YouTube Premium and Google One.

Sundar Pichai, CEO, said: “We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business. 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.”