Apr 26, 2025 | Posted by Abdul-Rahman Oladimeji
Alphabet's Google Cloud business has seen a strong first quarter of 2025, with revenue increasing 28 percent year over year (YoY). Revenue for the overall company was $90.2bn, up 12 percent YoY but less than Q4 2024's $96.5bn. The cloud business' margins came in at 17.8 percent, significantly up from the previous year, which saw margins of just 9.4 percent.
Google and Alphabet CEO, Sundar Pichai, said in his remarks: "Our differentiated, full-stack approach to AI continues to be central to our growth. This quarter was super exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achieving breakthroughs in performance, and it’s widely recognized as the best model in the industry. That’s an extraordinary foundation for our future innovation. And we are focused on bringing this to people and customers everywhere."
Capex for the quarter was $17.2 billion, of which the majority went to the cloud computing business, noted CFO Anat Ashkenazi. The largest investment was in servers, followed by data centers. The company is still expecting to spend $75 billion in the course of the year, though "the investment level may fluctuate from quarter to quarter due to the impact of changes in the timing of deliveries and construction schedules," said Ashkenazi.
