Google parent Alphabet delivered first quarter earnings and revenue that topped consensus estimates as internet search advertising growth beat expectations. Google stock popped as cloud computing growth was virtually in-line with views while YouTube fell slightly short.
Reported after the market close on Thursday, Google earnings for the quarter ending March 31 surged 48% to $2.81 per share. The tech giant reports Google earnings under generally accepted accounting principles, also known as GAAP. Adjusted operating margin came in at 40%, topping estimates of 38%.
In Q1, Google's gross revenue rose 12% to $90.2 billion amid headwinds from currency exchange rates and a weaker U.S. dollar.
Analysts polled by FactSet had projected EPS of $2.01 on revenue of $89.2 billion.
Also, Google's Q1 internet search-advertising revenue came in at $50.7 billion, up 10%, versus estimates of $50.4 billion.
Further, Google said cloud-computing revenue rose 28% to $12.26 billion, virtually in-line with estimates.
Meanwhile, YouTube ad revenue climbed 10.3% to $8.93 billion, slightly missing estimates of $8.97 billion.
On the stock market today, Google stock popped more than 3% to 165.31 in extended trading. Heading into the Google earnings report, Alphabet stock had retreated 17% in 2025.
In addition, Alphabet said its board of directors authorized a $70 billion stock repurchase program, the same as in 2024. The company repurchased $15.07 billion of its own stock during Q1.
Further, Alphabet stock holds an IBD Composite Rating of 75 out of a best possible 99, according to IBD Stock Checkup.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
GOOGL Stock Technical Ratings
Google is among AI stocks to watch.
Google stock holds an Accumulation/Distribution Rating of D. That institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
If you're new to IBD, consider taking a look at its trading system, especially for bull and bear markets, the basics of technical analysis and recognizing base patterns. One great resource is Investor's Corner. Give thought to monitoring updates to IBD stock watchlists.
IBD offers a broad range of growth stock lists. Amid market volatility, here are some useful strategies. Meanwhile, IBD doesn't put much weight on P/E ratios and other valuation metrics. On the other hand, here are some time-tested trading rules.
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