Google gains 25M subscriptions in Q1, driven by YouTube and Google One

Google has added another 25 million paid subscriptions to its services over the past quarter, parent company Alphabet announced during its first-quarter earnings report on Wednesday. The company said it now has 350 million paid subscriptions across its services, up from 325 million in Q4 2025 , with YouTube and Google One — its cloud storage and subscription service — plans driving the recent growth.

The earnings report didn’t highlight the number of Gemini subscribers or its monthly active users. But access to advanced Gemini features is now bundled in with those Google One plans , which are growing.

The lack of solid numbers may suggest that the Gemini chatbot still has more than 750 million users, the same benchmark reported in the prior quarter . Google pointed to the growth of Gemini in the key enterprise market, noting a 40% quarter-over-quarter increase in paid monthly active users. It did not offer a solid number here, either.

YouTube ad revenue missed Wall Street expectations, even as it continued to grow year over year.

As Google pushes ad-free viewing as part of its YouTube Premium subscription plan, the video service has seen a decline in ad revenue that has worried investors. Per CNBC , Wall Street expected Alphabet to bring in $9.99 billion in YouTube ad revenue this quarter, but it pulled in $9.88 billion. Alphabet CEO Sundar Pichai had warned analysts last quarter that investors should evaluate YouTube’s business going forward based on a combination of ads and subscriptions: When users switch to a YouTube subscription plan, it has a negative impact on ad revenue.

Last year, YouTube’s annual revenue topped $60 billion across both ads and subscriptions, with Q4 2025 bringing in $11.4 billion in YouTube ads alone. This quarter, the YouTube ads figure was $9.9 billion. That’s up 11% year-over-year, the company pointed out, but a shortfall on analyst expectations suggests that consumers are continuing to move from ad-supported YouTube viewing to ad-free subscriptions through YouTube Premium. We expect to hear more about this on the company’s earnings call.

Either way, Alphabet’s stock is up after surpassing Wall Street’s expectations, with revenue of $109.9 billion, which included healthy cloud growth. Cloud revenue alone topped $20 billion.

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Editorial analysis

The acquisition of 25 million new subscriptions by Google in the first quarter indicates a strengthening of its monetization strategy, especially in a scenario where YouTube's advertising revenue did not meet market expectations. For the Brazilian tech sector, this highlights the importance of diversifying revenue sources, as excessive reliance on ads can be risky. The growth of Google One, which now includes advanced features from Gemini, also suggests a growing trend of service integration, which could be a model for local companies looking to increase customer retention.

Moreover, the migration of users to YouTube Premium subscription plans may signal a shift in digital content consumption habits. In Brazil, where mobile internet access is predominant, this transition could impact how local media and entertainment companies position themselves. It is crucial for these companies to consider adopting subscription models to ensure financial sustainability in an increasingly competitive market.

The underperformance of YouTube's advertising revenue also raises questions about the effectiveness of digital marketing strategies. With increasing competition from platforms like TikTok and Twitch, Google needs to continuously innovate to maintain its relevance. What to watch for in the coming quarters is how Alphabet will balance ad revenue with subscription growth, especially in an environment where consumers are increasingly willing to pay for ad-free experiences. This dynamic could directly influence Brazilian consumer behavior, which already shows a growing trend towards adopting paid streaming services.

Finally, the lack of concrete numbers regarding Gemini's performance may indicate a strategic focus on corporate markets, where demand for AI solutions is rising. For Brazil, this could mean opportunities for startups looking to integrate artificial intelligence into their operations, particularly in sectors like finance and healthcare, where efficiency and automation are increasingly valued.

Google gains 25M subscriptions in Q1, driven by YouTube and Google One

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Editorial analysis

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