Alphabet Inc, the corporation that oversees Google, revealed their financial results for the first quarter, showcasing a 15% growth in revenue compared to the previous year, amounting to $80.539 billion. Exceeding analyst expectations, the company reported an earnings per share of $1.89, outperforming the estimated $1.51 per share. This marks the fifth consecutive quarter where Alphabet has surpassed analyst predictions on both revenue and earnings, as indicated by data from Benzinga Pro.
Diving into the specifics of the revenue breakdown for the quarter, Google Search revenue accounted for $46.156 billion, while YouTube advertising revenue was reported at $8.09 billion, and Google Cloud revenue totaled $9.574 billion. Alphabet's CEO, Sundar Pichai, expressed satisfaction with the results, attributing the strong performance to Search, YouTube, and Cloud, stating that the company is progressing effectively within its Gemini era with positive momentum across various divisions. Pichai highlighted Alphabet's positioning in AI research, infrastructure, and global product deployment as advantageous for future AI innovation.
Moreover, Alphabet's board approved a buyback program of up to $70 billion in shares, signaling confidence in the company's financial position and outlook. In addition, Alphabet announced its maiden quarterly dividend, with 20 cents per share to be distributed on June 17 to shareholders as of June 10, with intentions to continue quarterly dividend payments. Notably, Alphabet refrained from providing future guidance in the earnings report, with management scheduling a conference call at 4:30 p.m. ET to delve into the details of the results. Following the announcement, Alphabet's stocks surged by 12.2% in after-hours trading, reaching $177.11 at the time of publication according to Benzinga Pro.