Shares of Alphabet Inc. (GOOGL) surged 5.58% in pre-market trading on Friday, following the tech giant's impressive first-quarter earnings report and announcement of a massive share repurchase program. The Google parent company not only beat Wall Street expectations but also signaled confidence in its future prospects amid ongoing AI innovations and cloud growth.
Alphabet reported earnings per share of $2.81, significantly outperforming the analyst consensus of $2.01. Revenue for the quarter reached $90.23 billion, up 12% year-over-year and surpassing estimates of $89.12 billion. The company's core businesses showed robust growth, with Google Services revenue increasing 10% to $77.3 billion and Google Cloud revenue jumping 28% to $12.3 billion. CEO Sundar Pichai highlighted the success of AI-powered features, stating, "Underpinning this growth is our unique full stack approach to AI."
In a move that further bolstered investor confidence, Alphabet's board authorized a new $70 billion share repurchase program and announced a 5% increase to its quarterly dividend. This decision reflects the company's strong cash flow and commitment to returning value to shareholders. Despite ongoing global economic uncertainties and potential headwinds from changes in trade policies, Alphabet's strong performance across its diverse business segments has reassured investors about the company's resilience and growth potential in the evolving digital landscape.
