Google could be threatened by breaking up after the loss of two antimonopoly cases, but in the meantime, heaps of money can comfort.
Alphabet, parent company Google, published Results on Thursday, which included a large profit jump. Net income for the first quarter was $ 34.54 billion, which is an increase compared to $ 23.66 billion a year earlier.
Many of this, however, increases from investment in capital, not from operation. It is still money, but less exciting for investors and analysts. After Google’s reports, they participate in trading.
Revenue was $ 90.23 billion in quarter, 12 percent compared to the year earlier. That was a bit better than a consequence of a consensus of $ 89.15 billion. Income from operations increased by 20 percent, better than expected.
Sundar Pichai, CEO of Google, said in his statement that the results “reflect healthy growth and momentum throughout the business”. When he and other executives were questioned by a conference call about how a potentially more rcky second quarter was going, they said it was too early to say it.
The Mountain View, California, also said it allowed a $ 70 billion repurchase and increases its dividend of 5 percent. Google introduced a dividend last year.
In 2025, the technical giant got to the institutional start, with its shares in one point dropped by almost 25 percent of the February peak. One of the reasons was the economic restlessness caused by the zeal of President Trump for tariffs. For example, Chinese companies of electronic trading Tem and Shein are important advertisers on Google. With a flowering trade war between China and the United States, they buy fewer ads.
Analysts said the results could prove to be the highest point for the year. “Google registered strong numbers last quarter before a possible storm,” wrote Yory Wurmser, Emarketer, Chief Analyst.
Another obstacle for Google: Artificial Intelligence. The search is a rapid evolution led by AI, which gives Google new competitors such as OpenI and confusion.
Mr. Pichai stressed during the conference call that Google’s own companies are doing well. “There was a great momentum,” he said. The AI overview, a new form of Google search has 1.5 billion users a month.
And then there are antitrust losses. In August, the federal judge found that Google had an illegal monopoly on online search. A suitable remedy is now arguing in court. This month, another federal judge ruled that Google had a monopoly in his online advertising technology.
Of course, Google promises to fight antitrust cases until it reaches victory, but some analysts say it might be better to break actively. The past gives a certain encouragement to this opinion.
The government was chasing IBM for 13 years, from 1969 to 1982, until its antitrust case was finally abandoned. IBM has never obtained its dominance. Scientists claimed that it could have been better for society if it settled and was free to innovate. The same argument is used on Microsoft. The software company prevented its own breakup to appeal in the opposite case in 2001, but it also seemed that it would stop for decades.
Google’s growth has slowed down, an inevitable consequence of its size and success. In the early years, revenue normally increased by 50 percent or 100 percent because consumer internet has undergone a manic growth phase. Then Google became a verb. Now it is too big to grow rapidly.
Mr. Pichai did not mention the opposite cases in his prepared comments for the challenge and no analysts asked them. Which does not mean that they think the problem will disappear.
“We think the company can be obliged to change its business practices and could pay fines,” wrote Dave Heger, a Senior Senior Senior Seniors in BROKERAGE EDWARD Jones, in a research report.
Changes in operations are still unspecified, but Google could afford to pay almost any fine. Anat Ashkenazi, the ALPHABET CFO, said the company ended a quarter of $ 95 billion in cash and tradable securities.
To put this number in the perspective when Google published in 2004, the company’s value was only a quarter – or $ 23 billion.
