Google parent Alphabet Inc. reports YouTube‘s ad revenue climbed to $8.93 billion in the first quarter of 2025, marking a 10.3% increase year-over-year. The video platform’s strong performance contributes to Alphabet’s overall revenue growth of 12% to $90.2 billion.

“Yesterday marked a historic milestone: the 20th anniversary of the first video uploaded to YouTube,” CEO Sundar Pichai noted during the earnings call. “From that single, 19-second upload, the platform has grown into a global phenomenon.”

The ad revenue figure comes in slightly under analyst expectations of $8.97 billion, according to StreetAccount. However, YouTube’s total financial impact extends beyond advertising, with a significant contribution from subscription services as well.

The company announced that its YouTube Music and Premium services have surpassed 125 million subscribers globally, including trial subscribers. This growth aligns with Alphabet’s broader subscription strategy, which now counts more than 270 million paid subscriptions across all services.

To diversify subscription options, YouTube recently expanded its Premium Lite pilot to the U.S. market. This lower-priced tier, available at $7.99 per month (compared to $13.99 for standard Premium and $10.99 for YouTube Music), provides users with an ad-free viewing experience while excluding some features of the full Premium subscription.

Television Viewing and Content Expansion

YouTube continues to strengthen its position in the television viewing market. “TV is the primary device for YouTube viewing in the U.S.,” Pichai stated. “According to Nielsen, YouTube has been number one in streaming watch time in the U.S. for the last two years.”

The platform is also expanding its reach in audio content, with Pichai reporting that “YouTube now has over 1 billion monthly active podcast users.”

According to research from Wall Street firm MoffettNathanson, YouTube is poised to surpass Disney as the largest media company by revenue in 2025.

Overall Financial Performance

Alphabet’s Q1 results reflect strong performance across its business segments:

• Overall revenue increased 12%, or 14% in constant currency, to $90.2 billion
• Google Services revenue (which includes YouTube) grew 10% to $77.3 billion
• Operating income increased 20% to $30.6 billion, with operating margin expanding 2% to 34%
• Net income rose 46% to $34.5 billion
• Diluted earnings per share increased 49% to $2.81

“We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business,” Pichai said. “Underpinning this growth is our unique full-stack approach to AI.”

The company announced a 5% increase to its quarterly dividend, resulting in a payment of $0.21 per share. Additionally, Alphabet’s Board of Directors authorized the repurchase of up to an additional $70 billion of its Class A and Class C shares.

YouTube’s performance comes amid Alphabet’s continued investments in artificial intelligence across its products and platforms. The company emphasizes that all 15 of its products with over half a billion users now leverage Gemini models, pointing to a technology strategy that spans its entire portfolio, including YouTube.