Google wows Wall Street with strong Q1, but deflects questions about its business since Trump’s tariffs

If the economy is heading to contraction, Google did not feel it.

Or at least, he did not feel until March 31.

The online search giant informed strong results in the first quarter on Thursday, which sent its shares up to 5 % after hours, as the main advertising and cloud companies achieved healthy growth. But these results apply to the first calendar quarter of the year, before Trump’s global war is raised seriously.

As for Google’s work conditions, Google does not say. Google-Parent Alphabet executive managers have maintained a disciplined silence on Thursday’s profit on anything that happened in the current quarter, despite analysts’ efforts to get an update.

“It is too early to comment.”

“It is clear that we are not immune from the total environment, but we do not want to predict the potential effects,” Shendler said. (One of the information that the Schindler was ready to share the concealment of the so-called De-MINIMIS that depends on Chinese retailers such as Shein and TEMU, which would cause “minor opposite winds” in the Google advertising in 2025, especially from Asian retailers).

After weeks of turmoil in the markets, and a variety of fears weighing on Google in particular, the power card report card – along with the news that will be issued by a share of a stake and a re -purchase of $ 70 billion of shares – was more than sufficient reason to celebrate the celebration on Thursday.

Google grew to the highest year on a 12 % annual basis in the first quarter to 90.2 billion dollars, overcoming the average expectations of analysts of $ 89.2 billion, while profits per share amounted to $ 2.81 compared to $ 2.01 expected by Wall Street. The company has strengthened growth to the strong demand of advertisers in the financial industry, insurance, health care and retail trade.

Revenue from ads on the video site on YouTube grew by 10 % from the previous year to $ 8.9 billion, while Google cloud works increased by 28 % to $ 12.3 billion.

The CEO of Alphabet Sundar Pichai described the gains in the company’s efforts of artificial intelligence, including an “artificial intelligence overview” that is presented through Google’s search service, which Pachai now said by 1.5 billion users per month. The company confirmed the confirmation of a pre -announced plan to spend $ 75 billion in the capital expenditures of the cloud infrastructure and the impure organization this year, indicating that it remains optimistic in the business field of Amnesty International.

Many dangers facing Google

It is a difficult time for the alphabet. Going to a profit report on Thursday, the company’s shares decreased by 15 % so far this year, more than the decline in the NASDAC or S& P 500.

Alphabet works serious risks on multiple fronts, as economic uncertainty in the Trump tariff pressure his basic advertising works, and threatens the spread of new strong artificial intelligence models by disrupting the hegemony of the Internet, and government organizers seek to dismantle the company.

The court cases and the organizational threats faced by the alphabet were not supported during a profit call on Thursday, as executive officials highlighted the progress in the various products of the company, starting from its subscriptions to the fast YouTube to the self -driving Waymo cars.

The fact that the alphabet historically did not provide detailed “guidelines” expectations about its profit calls given by some cover to avoid the elephant in the room – the current status of the request of advertisers (contrary to the status of the request in the first quarter).

Since the advertisement represents nearly three quarters of Alphabet’s revenues, the health of the global advertising market in the coming months will be decisive. Declaration and marketing budgets are usually among the first expenses that companies cut into an economic shrinkage, and with uncertainty about customs tariffs, many economists and investors are concerned about the potential stagnation.

If Google’s business is really decreasing in April, the company felt that it was binding at least to provide a kind of warning. For some, the fact that Google remained my mom can be explained as an implicit sign of confidence. Although Shendler avoided questions about the working conditions in April, it has alluded to Google’s experience in the previous economic recession and comparative flexibility of research ads compared to other types of ads.

“For miniaturization, I would like to say that we have a lot or experience in administration at unconfirmed times,” Shendler said.

This story was originally shown on Fortune.com

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2025-04-24 23:39:00