Google parent Alphabet reported first-quarter earnings Thursday afternoon, becoming the first of the trillion-dollar U.S. technology behemoths to report earnings from the first quarter, a period marred by elevated economic uncertainty that could weigh on the advertising-heavy Google.

Valuing Google might be the “closest thing to impossible” with significant macroeconomic and … More regulatory uncertainty, shrugged one Wall Street analyst.

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Key Facts

Alphabet brought in $90.2 billion of revenue in Q1, topping consensus analyst estimates of $89.2 billion, and $2.81 diluted earnings per share ($34.5 billion net income), smashing forecasts of $2.01 EPS ($24.8 billion net income), according to FactSet.

That equates to 12% top line expansion from Q1 2024 and 49% bottom line growth year-over-year.

Alphabet’s bread-and-butter Google search unit generated $50.7 billion in sales, compared to forecasts of $50.5 billion, and its artificial intelligence-heavy Google cloud brought in $12.3 billion, matching projections of $12.3 billion.

Google stock jumped about 4% in after-hours trading immediately following the release, and its $168 afternoon share price has the tech firm on track to open at its highest level in four weeks.

The company also announced Thursday board authorization for a $70 billion stock buyback program, and it will increase its quarterly cash dividend by 5% to $0.21.

When Is Google’s Earnings Call?

Google management will conduct a conference call with analysts beginning at 4:30 p.m. EDT, live streamed here. Google does not historically provide any specific financial guidance for future periods, but investors will certainly keep a keen eye on any hints for how CEO Sundar Pichai expects the complicated macro picture to impact its business in the call.

Google Stock Bounced Before Earnings As Nasdaq Jumped 2%

Shares of Google rose during Thursday’s regular session ahead of the release, gaining more than 2% to $161, the highest level in two weeks. The bounce came as stocks continued to rally on renewed hopes President Donald Trump would keep backing down from his most aggressive tariff plans, and the tech-heavy Nasdaq index rose nearly 3% on Thursday, heading to its third consecutive day of an at least 2% rally. That’s the first time the Nasdaq has risen by that much in three straight trading sessions since 2001, according to Bespoke Investment Group. Still, Google stock is down 16% year-to-date, slightly worse than the tech-heavy Nasdaq’s 12% decline as fears of an economic slowdown tied to Trump’s trade war broadly ate into investor confidence.

How Is Google Impacted By Tariffs?

Google is grappling with a “negative tariff ad spend impact,” according to Post, specifically noting declining spending from Chinese discount retailers Temu and Shein as Trump’s more than 100% tariffs on Chinese imports stifle the flow of goods from the country to U.S. consumers. Still, Google has “relatively less” pressure from the choppy operating environment, according to Post. About 4% to 5% of Google’s revenues come from Chinese companies spending on U.S. advertising, according to Bernstein analyst Mark Shmulik, much less than the 7% to 8% exposure from Google’s top digital advertising rival, Facebook parent Meta.

Crucial Quote

“If investing in US tech stocks was difficult right now, underwriting Google might be the closest thing to impossible,” Shmulik wrote Wednesday. Among the massive unknowns swirling around Google are recession concerns, tariff exposure, potential for generative AI to disrupt online search, a “library of regulatory overhangs” and a “potential lightning rod for international retaliation” against American entities, explained Shmulik.

Tangent

Among the “library” of regulatory hurdles facing Google include high-profile monopoly probes from U.S. prosecutors. A federal judge ruled last week Google maintains an illegal monopoly in advertising technology, and the Justice Department argued in an ongoing antitrust case the company should be forced to sell its Chrome web browser.

Key Background

Google is one of the six West Coast tech companies with market values of at least $1 trillion, joined by Apple, Microsoft, Nvidia, Amazon and Meta (those companies are often lumped together with Elon Musk’s Tesla to form the “magnificent seven”). Google was a key part of the massive tech stock rally as generative AI’s popularity spiked, as its share price more than doubled from the end of 2022 to 2024. But big tech has stalled on Wall Street as recession fears escalated, as Bloomberg’s magnificent seven index has declined about 20% in 2025.

What To Watch For

Next week, Amazon, Apple, Meta and Microsoft will all report earnings from 2025’s first three months. Tesla, the least valuable member of the magnificent seven, shared its Q1 report Tuesday, missing on both profit and revenue forecasts.