Google Q1 Earnings Update!
Beats on all fronts. Strong Search, Cloud, and YouTube Growth
Google stock has had a tough couple of months.
The company has lost a series of antitrust lawsuits that could throttle its dominance.
Additionally, OpenAI’s ChatGPT continues its rise, becoming more popular every day. OpenAI is increasingly seen as a threat to Google’s flagship Search business.
Couple that with an uncertain economy, and a possible recession caused by Trump’s Trade War, and you get a 30% drawdown!
However, despite the various narratives, Sundar Pichai’s Google continues to execute, demonstrating once again that it is one of the best companies out there.
Google just posted a strong Q1 earnings report, sending the stock up 5%.
In this article, I will look at Google’s Q1 2025 results, if you want a more detailed analysis of the business, read my Google Investment Case!
Let’s have a look at this quarter!
1. Search
2. YouTube
3. Cloud
4. Subscriptions, Platforms, and Devices
5. Advertising Network
6. AI and Waymo
7. Consolidated Finances
8. Valuation
9. Conclusion
1. Search
The Search segment earned the company $50.7B, up 9.9% Y/Y!
Looking at the chart above, we see that the segment continues growing steadily, outperforming the expectations of many analysts. However, growth was lower than in the previous quarter, down from 12.5% in Q4, 12.2% in Q3, and 14.4% in Q1 of 2024.
ChatGPT was released in 2022, but you can’t see it on this graph. After it partnered with Microsoft to integrate OpenAI’s models into Bing, it was supposed to take Google’s lunch.
Clearly, that hasn’t happened.