Alphabet Announces Stock Buyback and Dividend Boost

Alphabet (Google Parent): Alphabet reported better-than-expected earnings and announced a stock buyback and extended dividend.

May 7, 2025 — Alphabet Inc. (NASDAQ: GOOGLe), the parent company of Google, reported stronger-than-expected first-quarter earnings on Tuesday, signaling continued strength in its core advertising business and growing momentum in its cloud division. The tech giant also unveiled a significant stock buyback plan and announced an increase to its dividend, underscoring confidence in its financial position.

Alphabet posted earnings per share of $1.89, beating analysts’ estimates of $1.72. Revenue rose 11% year-over-year to $80.5 billion, also ahead of Wall Street expectations. Advertising revenue, which remains Alphabet’s largest business segment, grew 9% to $62 billion, while Google Cloud posted a 28% jump in sales, reaching $11.4 billion.

In a show of shareholder commitment, Alphabet’s board approved an additional $70 billion share repurchase program. The company also declared a quarterly dividend of $0.25 per share, up from its previous payout, continuing the dividend program it launched last year.

CEO Sundar Pichai credited the strong results to consistent investments in AI and infrastructure, as well as disciplined execution across product lines. “We’re seeing strong adoption of our AI tools across Search, Cloud, and Workspace,” Pichai said. “These results reflect our focus on innovation and long-term value creation.”

Alphabet shares rose more than 6% in after-hours trading following the announcement.