Alphabet shares jump 14% on earnings beat, first-ever dividend

Alphabet shares rallied in extended trading on Thursday after the company reported results that topped analysts’ estimates and announced its first dividend.

Here are the results.

• Earnings per share: $1.89 vs. $1.51 per share expected by LSEG
• Revenue: $80.54 billion vs. $78.59 billion expected by LSEG

Wall Street is also watching several other numbers in the report:

• YouTube advertising revenue: $8.09 billion vs. $7.72 billion expected, according to StreetAccount.
• Google Cloud revenue: $9.57 billion vs. $9.35 billion expected, according to StreetAccount.
• Traffic acquisition costs (TAC): $12.95 billion $12.74 billion expected, according to StreetAccount.

Alphabet’s revenue increased 15% from $69.79 billion a year earlier, the fastest rate of growth since early 2022.

Alphabet said its board approved a cash dividend of 20 cents per share to be paid on June 17, to stockholders of record as of June 10. The company said it “intends to pay quarterly cash dividends in the future.”

Alphabet’s dividend follows Meta, which announced its first dividend in February.

The company also said its board authorized the repurchase of an additional $70 billion in shares “in a manner deemed in the best interest of the company and its stockholders.”

The company also beat Wall Street’s expectations for YouTube advertising revenue and cloud revenue.

This is breaking news. Check back for updates.