The numbers
$90.2 billion — Google’s revenue in the first quarter, beating analysts’ projections of $89.1 billion. The first-quarter revenue represents a 12% year-over-year lift.
$76.5 billion — Google’s Q1 sales in 2025, including $50.7 billion generated through Google Search, outpacing projections. The Google Cloud business, meanwhile, raked in $12.26 billion, a 28% year-over-year increase.
$66.8 billion — Google’s quarterly advertising revenue, coming in above Wall Street estimates of $66.4 billion. YouTube ad revenue specifically increased by about 10% year-over-year, bringing in $8.9 billion in the quarter.
$70 billion — The value of a new stock repurchase program greenlit by Alphabet’s board of directors this week, signaling confidence in the tech giant’s long-term prospects and balance sheet strength.
The watercooler talk
On a call with investors Thursday, Google CEO Sundar Pichai underscored the tech behemoth’s commitment to AI development.
A primary focus for the company is the ongoing development of its core Gemini models.
Google debuted Gemini 2.5 in March, its leading AI model. Gemini models now power 15 unique Google products, each of which have garnered more than 500 million users. Plus, active users of AI Studio and the Gemini API have grown over 200% since the start of 2025.
“The foundation for everything is the frontier model progress we are seeing, and particularly with [Gemini] 2.5, Pro and Flash,” Pichai said. “We are seeing tremendous reception from developers, enterprises, and consumers too, and obviously we are delivering consumer AI experiences across our product portfolio….”
Pichai also highlighted the recent rollout of AI Mode, a product for AI-powered Google Search that expands on the company’s AI Overviews, which use AI to surface information in some user search queries. AI Overviews have now amassed more than 1.5 billion monthly users.
“With the launch of AI overviews, the volume of commercial queries has increased,” noted Philipp Schindler, svp and chief business officer. Q1, he said, “marked our largest expansion to date for AI overviews, both in terms of launching to new users and providing responses for more questions.”
At its last quarterly earnings call in February, the company said it expected to incur around $75 billion in capital expenditures this year as AI demands grow.
Some of the company’s investments in AI are designed to serve advertisers and bolster Google’s massive ads business. Specifically, Schindler pointed to the company’s tests of ads in AI Overviews, the recent launch of new asset and audience recommendations within Audience Insights, and advancements in Performance Max, Google’s AI-driven campaign offering.
