Alphabet Shares Jump 5% in After-Hours Trading on Strong Q1 Earnings

Shares of Alphabet Inc., the parent company of Google, zoomed over 2% on NASDAQ after the company reported a higher-than-expected earnings for the March quarter. The company’s revenue beat estimates and rose 12% on year to $90.23bn, while its diluted earnings per share rose to $2.81bn from $1.89. The stock rose 5% in after-hours trading.

Revenues from both Google Search and Youtube ads surged in the quarter under revenue. The company’s net income rose to $34.54bn in the first quarter of 2025 from $23.66bn a year ago, according to Alphabet’s SEC filing. Top industries that have helped in the revenue growth of Google are finance, retail, healthcare, travel among others.

Alphabet said its board of directors approved a $70 billion stock repurchase program. “Alphabet’s Board of Directors declared a quarterly cash dividend of $0.21 representing a 5% increase from the previous quarterly dividend,” the company further said in the filing. 

Google’s revenue from YouTube ads came in just short of expectations at $8.93bn. Overall advertising brought in $66.89bn in revenue, up 8.5% from the year prior.

It is “not immune to the macro environment,” CNBC quoted Philipp Schindler, Google’s business chief, as saying. The decision of ending the de minimis trade exemption in the US, is expected to present slight headwind to the company’s advertisement business in 2025 as this exemption allows shipments worth less than $800 to enter duty-free in the US and the entities engaged in this have spent extensively in online ads, he added. The exemption is slated to close on May 2.

“I would say we have a lot of experience in managing through uncertain times…”, Schindler said. The company’s remarkable financials boosted investor sentiments at a time when the company is contending with the fallout from its antitrust losses.