Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: $90.234B; YoY +12.04%, QoQ -6.46%. Gross Profit: $53.873B; YoY +15.05%, QoQ -3.55%; Gross Margin: 59.70%
Operating Income: $30.606B; YoY +20.16%, QoQ -1.18%; Operating Margin: 33.92%
Net Income: $34.54B; YoY +45.97%, QoQ +30.16%; Net Margin: 38.28%
EPS (Diluted): $2.81; YoY +48.69%, QoQ +30.88%; Weighted Avg Shares Diluted: 12.291B
EBITDA: $46.31B; EBITDARatio: 0.5132; Interest Expense: $34.0M; Depreciation & Amortization: $4.487B
Cash Flow: Operating Cash Flow $36.15B; Capex $17.20...
Financial Highlights
Revenue: $90.234B; YoY +12.04%, QoQ -6.46%. Gross Profit: $53.873B; YoY +15.05%, QoQ -3.55%; Gross Margin: 59.70%
Operating Income: $30.606B; YoY +20.16%, QoQ -1.18%; Operating Margin: 33.92%
Net Income: $34.54B; YoY +45.97%, QoQ +30.16%; Net Margin: 38.28%
EPS (Diluted): $2.81; YoY +48.69%, QoQ +30.88%; Weighted Avg Shares Diluted: 12.291B
EBITDA: $46.31B; EBITDARatio: 0.5132; Interest Expense: $34.0M; Depreciation & Amortization: $4.487B
Cash Flow: Operating Cash Flow $36.15B; Capex $17.20B; Free Cash Flow $18.95B; Free Cash Flow Margin approx. 21.0%
Balance Sheet Highlights: Total Assets $475.374B; Total Liabilities $130.107B; Total Stockholders’ Equity $345.267B; Cash & Cash Equivalents $23.264B; Short-Term Investments $72.064B; Total Cash & Investments $95.328B; Net Debt source: ~$0.30B; Debt to Equity ~0.068; Current Ratio 1.77; ROE ~10.0%; ROA ~7.27%
Capital Allocation: Common stock repurchased $15.068B; Dividends Paid $2.434B; Net Cash Used in Financing Activities $(20.201)B; Cash at End of Period $23.264B
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
90.23B |
12.04% |
-6.46% |
| Gross Profit |
53.87B |
15.05% |
-3.55% |
| Operating Income |
30.61B |
20.16% |
-1.18% |
| Net Income |
34.54B |
45.97% |
30.16% |
| EPS |
2.84 |
48.69% |
30.88% |
Key Financial Ratios
operatingProfitMargin
33.9%
operatingCashFlowPerShare
$2.97
freeCashFlowPerShare
$1.56
dividendPayoutRatio
7.05%
Management Commentary
No earnings call transcript highlights are available in the provided data. See note: QQ1 2025 analysis is based on the reported financials and accompanying ratios. Management commentary from the call is not included in the dataset.
Forward Guidance
No explicit numeric forward guidance provided for QQ2 2025 or beyond. Given Alphabet’s AI/cloud investment cycle and advertising-mix exposure, key channels for evaluating future performance include: (1) Google Services ad revenue resilience against macro pressure and regulatory changes, (2) Google Cloud growth driven by AI and data analytics offerings, (3) monetization leverage from YouTube and other platforms, (4) operating expense discipline and cost structure improvements, (5) capital allocation maturity via buybacks and potential optional acquisitions. Investors should monitor quarterly ad demand signals, GCC (Google Cloud) progression in enterprise segments, AI product rollout cadence, and the pace of share repurchases as a proxy for management confidence in sustaining high free cash flow generation.