In a powerful show of confidence, Google parent Alphabet Inc. announced a massive $70 billion share repurchase plan and a 5% hike in its dividend Thursday, moves that sent its stock soaring in after-hours trading.
Shares surged 4% following the announcement, tacking on roughly $75 billion to Alphabet’s market capitalization in a matter of hours.
Big Buyback, Bigger Profits
Alphabet’s first-quarter earnings sailed past Wall Street’s expectations, as digital ad revenue continued to power growth even as its cloud division showed signs of cooling.
The tech giant reported total revenue of $90.23 billion, beating analysts’ forecast of $89.12 billion, according to data compiled by LSEG.
More striking: Alphabet posted $34.54 billion in net income, handily crushing the expected $24.85 billion. That’s a gap large enough to jolt even the most seasoned analysts.
Ad Business Still Dominates
Despite fears of a slowdown amid global economic uncertainty and mounting trade tensions, Google’s core advertising unit proved resilient.
Ad revenue climbed 8.5% to $66.89 billion, slightly below last quarter’s 10.6% pace but still ahead of analysts’ projection of 7.7%. That’s no small feat in a climate where companies are tightening budgets and scrutinizing every marketing dollar.
While the overall pace of growth is decelerating, the results reaffirm Google’s dominance in digital ads—accounting for roughly 75% of its total revenue.
Cloud Momentum Eases
Meanwhile, Google Cloud reported $12.26 billion in revenue, up 28% from a year ago. However, that figure was just shy of Wall Street’s forecast of $12.27 billion, and it marks a modest slowdown from last quarter’s 30.1% growth.
Still, analysts say the cloud business remains a key long-term play for Alphabet—even if it’s not delivering blockbuster surprises just yet.
Navigating Choppy Waters
The results come amid a jittery business climate shaped by trade policies under the Trump administration, which have raised concerns about a broader economic cooldown. That uncertainty has made advertisers more cautious—but not enough to derail Alphabet’s trajectory.
Looking Ahead
With its blockbuster quarter now in the books, Alphabet is sending a clear signal to investors: it’s flush with cash and confident in the road ahead.
A $70 billion buyback and a dividend boost don’t just reward shareholders—they underline the company’s belief in its own fundamentals.
As markets continue to weigh tech sector risks and opportunities, Alphabet’s results serve as a reminder: in the world of digital business, Google’s still king.
