Google CEO Sundar Pichai revealed that the company’s focus on artificial intelligence is driving revenue growth in the first quarter of 2025.
Google (Alphabet) said its revenues grew 12 percent from $80.539 billion in Q1 2024 to $90.234 billion in Q1 2025.
Revenue from Google’s ad business, which makes up nearly three-quarters of its total revenue, rose 8.5 percent to $66.89 billion in the quarter — a slowdown from the prior quarter’s 10.6 percent increase.
In Q1 2024, Google Search & other generated $46.156 billion, which increased to $50.702 billion in Q1 2025.
YouTube ads brought in $8.090 billion in Q1 2024, rising to $8.927 billion in Q1 2025. Revenue from the Google Network slightly declined from $7.413 billion in Q1 2024 to $7.256 billion in Q1 2025.
Revenue from Google subscriptions, platforms, and devices increased notably, going from $8.739 billion to $10.379 billion. Overall, this brought total revenue from Google Services up from $70.398 billion in Q1 2024 to $77.264 billion in Q1 2025.
Google Cloud saw a strong rise, jumping from $9.574 million in Q1 2024 to $12.260 billion in Q1 2025. Google Cloud revenues increased 28 percent, led by growth in Google Cloud Platform (GCP) across core GCP products, AI Infrastructure, and Generative AI Solutions.
Other Bets showed a slight decrease, from $495 million to $450 million.
Investors have welcome the financial result as stock price of Alphabet has closed at $161.47 after opening at $158.52 on April 24, 2025.
Sundar Pichai, CEO of Google, said: “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,” Sundar Pichai said.
Alphabet reaffirmed its $75 billion capital expenditure guidance for the year, emphasizing its commitment to AI expansion.
However, Chief Business Officer Philipp Schindler said U.S. trade policy shift is expected to slightly affect the ads business in 2025, particularly from Asia Pacific-based retailers. This includes major Chinese e-commerce players like Temu and Shein, who have already started cutting their U.S. digital ad spending, potentially impacting ad revenues for both Google and Meta.
Despite these challenges, Google continues to enhance its ad offerings through AI integration in search, helping advertisers achieve better performance. Sundar Pichai highlighted that AI Overviews now reach 1.5 billion users monthly, and the company introduced an AI-only search mode in March.
InfotechLeaad.com News Desk
