Alphabet Inc. stock research
FY2025 Q1
Alphabet (GOOGL) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased compared to the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, and cost of revenue declined sequentially, leading to an improved gross margin relative to both comparison periods.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased compared to the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, and cost of revenue declined sequentially, leading to an improved gross margin relative to both comparison periods.
- The sequential decline in cost of revenue, alongside a smaller decline in revenue, drove the improvement in gross margin from the prior quarter.
- Gross margin improved compared with the immediately preceding quarter and also improved compared with the same quarter one year earlier. Revenue was lower sequentially but higher year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.7%
Gross profit
$53.9B
Revenue
$90.2B
Cost of revenue
$36.4B
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $84.7B | $49.2B | $35.5B | 58.1% |
| Sep 30, 2024 | $88.3B | $51.8B | $36.5B | 58.7% |
| Dec 31, 2024 | $96.5B | $55.9B | $40.6B | 57.9% |
| Mar 31, 2025 | $90.2B | $53.9B | $36.4B | 59.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.8 pts
Year-over-year change
Mar 31, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in cost of revenue, alongside a smaller decline in revenue, drove the improvement in gross margin from the prior quarter.
Gross margin improved compared with the immediately preceding quarter and also improved compared with the same quarter one year earlier. Revenue was lower sequentially but higher year over year.
Monitor whether the trend in cost of revenue continues to decline relative to revenue in future quarters.