Google’s parent company US In the January-March (first quarter) results announced by Alphabet on the 25th, sales exceeded analysts’ expectations. Growth in the cloud computing sector contributed.
Net sales for the January-March period, excluding payments to partners, were $67.6 billion (approximately 10.5 trillion yen), exceeding the average analyst estimate of $66.1 billion compiled by Bloomberg. Net income was $1.89 per share, beating Wall Street expectations of $1.53.
The company also announced its first dividend, paying 20 cents per share. The company also announced an additional $70 billion in share buybacks. Shares rose 16% in after-hours trading.
Like other big tech companies, Alphabet is investing in the development of artificial intelligence (AI). This strategy has helped drive demand for the company’s cloud services, with sales for the business increasing 28% in the January-March period.
Google has developed much of the foundational technology used in the current AI boom, incorporating it into everything from web search to enterprise software such as Google Docs.
“We’ve seen increased contributions from our AI solutions,” Chief Investment Officer Ruth Porat told reporters on a conference call, adding that Google Cloud’s performance “really highlights the strength of the industry as a whole.” It reflects that,” he added.
Report on Alphabet’s financial results
Source: Bloomberg
Search ad revenue increased 14% to $46.2 billion. The average analyst estimate was $45 billion.
Google Cloud’s revenue is $9.6 billion. The division’s profit was $900 million, well above the $672.4 million expected by analysts.
Original title: Alphabet Beats Revenue Estimates as AI Fuels Cloud Growth (1) (excerpt)
(Add performance details and update stock prices)
Tags: Alphabets sales exceed expectations due strong cloud performance Dividend announcement Bloomberg
