Alphabet (NASDAQ: GOOGL) stock is grabbing attention today as it soared more than 10% during Friday’s intraday trading session following the release of its first-quarter earnings report, with earnings and revenue beating consensus estimates. The company also announced its first dividend and a new $70 billion stock repurchase program.
Alphabet (GOOGL) released its first-quarter financial results last week, beating analyst expectations on the top and bottom lines. The Google parent reported a 15% year-over-year increase in revenue to $80.539 billion, outperforming the consensus estimate of $78.594 billion. Quarterly earnings came in at $1.89 per share, exceeding analyst estimates of $1.51.
This marks the fifth consecutive quarter in which Alphabet has beaten analyst estimates, demonstrating its consistent growth trajectory and operational strength.
Key highlights from the quarter include robust revenue contributions from Google Search, YouTube advertising, and Google Cloud. Google Search revenue reached $46.156 billion, YouTube advertising revenue amounted to $8.09 billion, and Google Cloud revenue totaled $9.574 billion.
Sundar Pichai, CEO of Alphabet, expressed satisfaction with the first-quarter results, stating,
“Our results in the first quarter reflect strong performance from Search, YouTube and Cloud. We are well under way with our Gemini era and there’s great momentum across the company. Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation.”
In addition, Alphabet’s board has given the green light for a new share buyback program worth a staggering $70 billion.
Moreover, Alphabet, for the first time, announced a quarterly dividend. The board declared a cash dividend of 20 cents per share. On June 17, Alphabet will distribute the quarterly cash dividends to shareholders recorded as of June 10 and plans to maintain this practice.
Alphabet did not provide forward guidance in its earnings release
Alphabet (NASDAQ: GOOGL) Stock Reaction
At the time of this report, GOOGL stock is trading at $169.68, showing a 1.38% decrease from the previous trading session. The stock is up 23.09% year-to-date.
