Alphabet delivered a strong fourth quarter and full year, exceeding $400 billion in annual revenue for the first time, driven by robust growth in Google Services and significant acceleration in Google Cloud, fueled by AI demand. The company also announced substantial planned CapEx for 2026 to support this growth.
Consolidated Alphabet revenues increased 18% to $113.8 billion, accelerating from prior periods.
positiveGoogle Cloud revenues surged 48% to $17.7 billion, driven by enterprise AI infrastructure and solutions.
positiveNet income increased 30% to $34.5 billion, and diluted EPS grew 31% to $2.82.
positiveYouTube's annual revenues surpassed $60 billion for the full year 2025.
positiveGoogle Cloud ended 2025 at an annual run rate of over $70 billion.
positiveTotal Alphabet revenues exceeded $400 billion for the first time in fiscal year 2025.
positiveOperating income included a $2.1 billion employee compensation charge for Waymo.
attentionOther Bets operating loss widened significantly from $1.17 billion in Q4 2024 to $3.62 billion in Q4 2025.
negativeAlphabet-level activities (primarily AI R&D) expenses increased substantially from $2.78 billion in Q4 2024 to $5.89 billion in Q4 2025.
attentionPlanned CapEx for 2026 is anticipated to be in the range of $175 to $185 billion, a significant increase from $91.4 billion in 2025.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Google Services | N/A | — | — | — | +17.0% |
Google Cloud | N/A | — | — | — | — |
Other Bets | N/A | — | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
It was a tremendous quarter for Alphabet and annual revenues exceeded $400 billion for the first time.
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Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.