Q1 23 EPS
$1.17
BEAT +10.38%
Est. $1.06
Q1 23 Revenue
$69.79B
BEAT +1.31%
Est. $68.88B
vs S&P Since Q1 23
+187.6%
BEATING MARKET
GOOGL +265.8% vs S&P +78.2%
Market Reaction
Did GOOGL Beat Earnings? Q1 2023 Results
Alphabet kicked off 2023 on a stronger-than-expected note, posting first-quarter earnings per share of $1.17 against a consensus estimate of $1.06, a beat of 10.38%, while revenue of $69.79 billion edged past the $68.88 billion estimate and grew 2.6%… Read more Alphabet kicked off 2023 on a stronger-than-expected note, posting first-quarter earnings per share of $1.17 against a consensus estimate of $1.06, a beat of 10.38%, while revenue of $69.79 billion edged past the $68.88 billion estimate and grew 2.6% year over year. The headline story beneath the numbers was Google Cloud, which delivered $7.45 billion in revenue, up sharply from $5.82 billion a year ago, and swung to an operating profit of $191 million compared to a loss of $706 million in the prior-year period, underscoring the segment's growing contribution to the business. Those gains helped absorb $2.56 billion in restructuring charges tied to workforce reductions and office space cuts, which compressed overall operating margin to 25% from 30% a year ago. Alphabet's commitment to AI is also taking institutional form, with the Google DeepMind combination effective in Q2 2023, a structural signal of where the company is directing its next wave of investment, as evidenced by partnerships already extending its Cloud AI capabilities into commercial applications like drive-thru ordering systems. The board also authorized an additional $70 billion in share repurchases.
Key Takeaways
- • Search performing well with modest year-over-year growth
- • Google Cloud revenue growth of 28% year over year with first operating profit
- • Reduced depreciation expense of $988 million from server and network equipment useful life extension
- • Other income swung to $790 million gain from $1.16 billion loss year over year
- • Shift in equity grant timing reduced Q1 stock-based compensation expense
GOOGL YoY Financials
Q1 2023 vs Q1 2022, source: SEC Filings
GOOGL Revenue by Segment
With YoY comparisons, source: SEC Filings
GOOGL Revenue by Geography
With YoY comparisons, source: SEC Filings
“We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud. We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”
— Sundar Pichai, Q1 2023 Earnings Press Release
GOOGL Earnings Trends
GOOGL vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
GOOGL EPS Trend
Earnings per share: estimate vs actual
GOOGL Revenue Trend
Quarterly revenue: estimate vs actual
GOOGL Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $5.11 | — | $109.90B | +2.67% |
| Q4 25 BEAT FY | $2.63 | $2.82 | +7.22% | $113.83B | — |
| FY Full Year | $10.60 | $10.81 | +2.03% | $402.84B | +0.62% |
| Q3 25 BEAT | $2.27 | $2.87 | +26.70% | $102.35B | +2.20% |
| Q2 25 BEAT | $2.20 | $2.31 | +5.04% | $96.43B | +2.61% |
| Q1 25 BEAT | $2.01 | $2.81 | +39.75% | $90.23B | +1.21% |
| Q4 24 BEAT FY | $2.13 | $2.15 | +0.94% | $96.47B | — |
| FY Full Year | — | $8.04 | — | $350.02B | — |
| Q3 24 BEAT | $1.84 | $2.12 | +15.22% | $88.27B | +2.28% |
| Q2 24 BEAT | $1.84 | $1.89 | +2.72% | $84.74B | +0.65% |
| Q1 24 BEAT | $1.51 | $1.89 | +25.17% | $80.54B | +2.48% |
| Q4 23 BEAT FY | $1.59 | $1.64 | +3.14% | $86.31B | +1.15% |
| FY Full Year | — | $5.80 | — | $307.39B | — |
| Q1 23 BEAT | $1.06 | $1.17 | +10.38% | $69.79B | +1.31% |
| Q4 22 MISS FY | $1.18 | $1.05 | -11.02% | $76.05B | -0.63% |
| FY Full Year | — | $4.56 | — | $282.84B | — |