Alphabet Crushes Earnings—But This Might Be the High Point

​Alphabet just delivered a blowout quarter—but some analysts think this might be as good as it gets in 2025.

The Google parent reported Q1 earnings of $2.81 per share, far above the $2.01 consensus, with revenue clocking in at $90.2 billion, also topping estimates. The company sweetened the news with a 5% dividend hike and a massive $70 billion stock buyback.

“Alphabet didn’t just beat expectations—it flexed,” said Zacks strategist Kevin Cook.

But even with the fireworks, Wall Street isn’t popping champagne just yet. The company dodged tough questions on the call about its ad business, AI transition, and macro headwinds. And some analysts worry this might mark the earnings peak for the year, especially with growing concerns over tariffs and economic drag.

Google’s core advertising revenue—$66.9 billion, up 8.5% year-over-year—was strong, but execs admitted that future growth could take a hit as tariffs cut into retailer budgets. There’s also lingering concern that AI-generated search results could eat into ad click-through rates, though the company said monetization remains solid for now.

Meanwhile, Google Cloud posted $12.26 billion in revenue, rising 28% year-over-year but slowing from Q4. The company cited capacity constraints it plans to resolve by the end of 2025.

Despite all the risks, the stock is starting to look cheap. Alphabet shares are down 15.3% year to date, and the stock now trades at 17x forward earnings, near the low end of its historical range. That could make it a smart buy for investors willing to ride out some short-term turbulence.

​Bottom line: Alphabet may have just posted its best quarter of the year—but with trade and tech headwinds swirling, it could be a bumpy ride from here. Still, with a discounted valuation and solid fundamentals, long-term buyers may want to lean in.