Google's parent company Alphabet reported first-quarter earnings that exceeded market expectations and announced its first dividend.
On the 25th (local time), Alphabet announced first-quarter revenue of $80.54 billion and earnings per share of $1.89.
This performance surpasses analyst forecasts. According to Wall Street estimates compiled by market research firm LSEG, the expected revenue was $78.59 billion, with earnings per share of $1.51.
Compared to the same period last year, revenue increased by about 15% from $69.79 billion, and earnings per share rose 57% from $1.17.
In particular, the advertising and cloud segments outperformed Wall Street expectations. Google's total advertising revenue was $61.66 billion, up 13% from $54.55 billion in the same period last year. YouTube advertising revenue reached $8.09 billion, significantly exceeding the forecast of $7.72 billion.
Google Cloud revenue was $9.57 billion, surpassing the expected $9.35 billion. Notably, operating profit quadrupled to $900 million. CNBC analyzed that Alphabet has entered a profit-making phase after making massive investments to catch up with Amazon and Microsoft.
Alphabet also announced shareholder return measures including its first dividend. The board approved a cash dividend of 20 cents per share to shareholders holding stock as of June 10, payable on June 17. The company stated, "We plan to conduct cash dividends quarterly going forward." Additionally, it approved a $70 billion share repurchase program.
CEO Sundar Pichai stated, "Based on our leadership in AI research and infrastructure and our global product presence, we are well prepared for the next wave of AI innovation."
Alphabet's stock price fell about 1.97% during regular trading on the day, but after the announcement, it rose more than 13% in after-hours trading.
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