Alphabet, Google's parent company, announced it plans to repurchase $70 billion in shares and raise its dividend by five percent after exceeding Wall Street's expectations for first-quarter earnings.

Stocks surged 4 percent in after-hours trading, increasing the company's market capitalization by roughly $75 billion.

Alphabet surpassed quarterly revenue expectations, driven by consistent growth in its digital advertising sector, which balanced out the sluggish growth in its cloud computing division.

U.S. President Donald Trump's approach to trade has raised concerns about a potential economic decline, leading businesses to reconsider their advertising expenditures. Analysts, however, assert that the digital advertising market remained stable in the first quarter.

Revenue from Google's core advertising division, accounting for roughly 75 percent of its total income, increased by 8.5 percent to $66.89 billion in the quarter - a deceleration from the previous quarter's 10.6 percent growth, yet still surpassing analysts' forecasts for a 7.7 percent increase.

Google Cloud announced a 28 percent increase in revenue to $12.26 billion, a decrease from the 30.1 percent growth seen in the prior quarter. According to LSEG's data compilation, analysts anticipated the unit would announce revenue of $12.27 billion.

Also Read: 5 Unsung Heroes from Public Sector Companies

The firm disclosed total earnings of $90.23 billion for the initial quarter, surpassing analysts' average prediction of $89.12 billion, as per information gathered by LSEG.

Net income for the first quarter reached $34.54 billion, exceeding Wall Street's anticipated $24.85 billion.