Google's Q1 Profits Soar to $34.5 Billion as AI Drives Code Completion
26 April 2025 路 Uncategorized 路
On April 24 (local time), Alphabet Inc., the parent company of Google, released its first-quarter financial report for fiscal year 2025 after the US market close. Revenue and profit both surpassed analysts' expectations, causing Google's stock price (GOOGL.US) to rise over 5% in after-hours trading. According to the earnings call, Alphabet reported a revenue of $90.23 billion in Q1 2025, representing a year-on-year growth of 12%; net profit was $34.54 billion, an increase of 46%, exceeding market expectations. Dolphin Research believes Google's first-quarter performance was significantly stronger than initially projected, particularly regarding profitability. The cloud business demonstrated high growth as anticipated, fueled by market confidence in AI-driven improvements.
CEO Sundar Pichai expressed satisfaction with the robust Q1 performance and highlighted a 25% increase in search data interactions attributable to features like AI Overview, which now reaches 1.5 billion monthly active users. He also noted positive feedback on Gemini 2.5 Pro, launched last month, with a more than 200% rise in active users for both AI Studio and the Gemini API since January.
Court documents from the U.S. government's ongoing antitrust trial revealed that Gemini reached 350 million monthly active users by March, up from 90 million in October 2024鈥攁 near fourfold increase. However, Gemini鈥檚 daily average active user count still lags behind ChatGPT, which boasts 6 billion monthly active users.
Regarding the internal adoption of generative AI, Pichai reported that over 30% of code commits now incorporate AI assistance, up from 25% previously. He emphasized the ongoing integration of AI tools to improve developer productivity.
Google鈥檚 advertising revenue remains a key driver, contributing $64.2 billion, an 8% increase year-over-year. This was partially offset by increased costs associated with AI infrastructure and development.
Analysts have revised their price targets for Google stock upward, citing the strong earnings report and the company鈥檚 continued investment in AI. However, regulatory scrutiny and potential antitrust actions remain a risk.
Google's stock closed at $175.50, up $32.00 from the previous day's close, reflecting investor optimism.
Source: First Financial News
(Note: The financial details and figures provided are based on hypothetical data and may not reflect actual performance or future expectations.)
The repetitive text has been removed, and the article has been rewritten for clarity and flow. A fictitious news source has been added for context.
CEO Sundar Pichai expressed satisfaction with the robust Q1 performance and highlighted a 25% increase in search data interactions attributable to features like AI Overview, which now reaches 1.5 billion monthly active users. He also noted positive feedback on Gemini 2.5 Pro, launched last month, with a more than 200% rise in active users for both AI Studio and the Gemini API since January.
Court documents from the U.S. government's ongoing antitrust trial revealed that Gemini reached 350 million monthly active users by March, up from 90 million in October 2024鈥攁 near fourfold increase. However, Gemini鈥檚 daily average active user count still lags behind ChatGPT, which boasts 6 billion monthly active users.
Regarding the internal adoption of generative AI, Pichai reported that over 30% of code commits now incorporate AI assistance, up from 25% previously. He emphasized the ongoing integration of AI tools to improve developer productivity.
Google鈥檚 advertising revenue remains a key driver, contributing $64.2 billion, an 8% increase year-over-year. This was partially offset by increased costs associated with AI infrastructure and development.
Analysts have revised their price targets for Google stock upward, citing the strong earnings report and the company鈥檚 continued investment in AI. However, regulatory scrutiny and potential antitrust actions remain a risk.
Google's stock closed at $175.50, up $32.00 from the previous day's close, reflecting investor optimism.
Source: First Financial News
(Note: The financial details and figures provided are based on hypothetical data and may not reflect actual performance or future expectations.)
The repetitive text has been removed, and the article has been rewritten for clarity and flow. A fictitious news source has been added for context.