Google parent Alphabet has revealed its finances for the winter quarter of the preceding year, with annual revenue surpassing $400 billion for the first time. This was built on the growth in advertising, accelerating growth in Google Cloud, and increasing traction for AI-powered features across Search, YouTube, and the Gemini ecosystem.
Fourth-quarter revenue reached $113.83 billion, up 18% year over year and above analyst estimates of approximately $111.4 billion. Adjusted earnings per share came in at $2.82, beating consensus forecasts of around $2.63. Net income rose nearly 30% to $34.46 billion from $26.54 billion in the prior-year period. Full-year 2025 revenue totaled $406.2 billion, marking a 15% increase from 2024. Operating income for the year stood at $129 billion, while net income reached $132 billion.
Going forward, the company expects capital expenditures in the range of $175-185 billion for the current year. Still, its “Other Bets” segment, which includes Waymo, Verily, and other moonshot projects, reported $370 million in revenue, down 7.5% year over year, and an operating loss of $3.61 billion.
“It was a tremendous quarter for Alphabet and annual revenues exceeded $400 billion for the first time. The launch of Gemini 3 was a major milestone and we have great momentum. Our first party models, like Gemini, now process over 10 billion tokens per minute via direct API use by our customers, and the Gemini App has grown to over 750 million monthly active users. Search saw more usage than ever before, with AI continuing to drive an expansionary moment. We continue to drive strong growth across the business. YouTube’s annual revenues surpassed $60 billion across ads and subscriptions; we now have over 325 million paid subscriptions across consumer services, led by strong adoption for Google One and YouTube Premium. And Google Cloud ended 2025 at an annual run rate of over $70 billion, representing a wide breadth of customers, driven by demand for AI products,” Sundar Pichai, Alphabet and Google CEO, announced in an official statement.
For the quarter, its advertising unit continued to remain the dominant revenue driver, generating $82.28 billion in the fourth quarter, a 13.5% increase from the prior year. YouTube advertising revenue grew almost 9% to $11.38 billion, though it fell slightly short of expectations of $11.84 billion. The tech titan also pocketed $63 billion from Google Search. In addition to this, Google Cloud delivered strong growth, with revenue climbing nearly 48% to $17.66 billion, surpassing analyst projections of around $16.2 billion. Google subscriptions, platforms, and devices (which includes revenue from Google One, YouTube Premium, hardware, and Play Store fees) rose to $13.58 billion from $11.63 billion a year earlier, driven by strong subscriber growth and monetization improvements.
Alphabet has, much like other tech firms, firmly focused on AI by integrating it across the company’s products, and according to the finances, the bet has paid off rich dividends. The Gemini app now has more than 750 million monthly active users, up from 650 million the previous quarter, following the launch of Gemini 3 in November 2025. Search usage reached record levels, with daily queries in AI Mode doubling since its launch. The company has begun testing agentic shopping experiences within AI Mode, aiming to guide users toward seamless product discovery and checkout directly from the conversational interface. Ads in AI Mode are present as well.
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