Alphabet Surges After Strong Q1 Earnings; Analysts Boost Price Targets
- Elise Ember
- Apr 25
- 2 min read
delivered blockbuster first-quarter results for 2025, surpassing Wall Street forecasts and triggering a wave of price target hikes from major investment firms.
The tech giant, which owns Google and YouTube, posted strong gains across its core advertising and cloud computing businesses—two pillars that have helped the company navigate an evolving digital economy with confidence.
Q1 Financial Highlights:
Revenue: $90.23 billion (up 12% year-over-year)
Net Income: $34.54 billion (up 46% YoY)
Earnings Per Share (EPS): $2.81, beating analysts’ expectations
Alphabet's core search business generated $50.7 billion in revenue, a 10% annual increase, while its cloud unit posted a remarkable 28% jump, reaching $12.3 billion.
Massive Share Buyback Shows Confidence
In a bold move, Alphabet’s board authorized a new $70 billion share repurchase program, signaling strong confidence in its long-term growth potential and healthy cash reserves.
This comes as Alphabet continues to double down on artificial intelligence (AI), with the company revealing that AI Overviews, its generative AI feature in Google Search, now reaches 1.5 billion users each month.
Stock Rallies, Analysts React
Alphabet’s shares jumped over 4% in after-hours trading following the earnings report. Leading financial institutions like Goldman Sachs, Morgan Stanley, and Barclays raised their price targets for the stock, citing momentum in AI, a strong balance sheet, and improved margins in its cloud division.
Looking Ahead: Investments in AI and Cloud
Alphabet is expected to spend $75 billion in capital expenditures throughout 2025, focusing primarily on AI infrastructure, data centers, and cloud expansion.
Despite facing global regulatory scrutiny—including antitrust lawsuits in the U.S., Japan, and the EU—Alphabet remains steadfast in executing its long-term innovation roadmap.
Market Snapshot:
Stock Price: $159.28
Market Cap: $2.03 trillion
P/E Ratio: 21.49
EPS: 7.7
With a renewed focus on AI, digital advertising resilience, and continued leadership in cloud services, Alphabet looks well-positioned to thrive in 2025 and beyond.
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