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Alphabet’s latest earnings report just dropped, and the numbers are no joke. The company pulled in $113.83 billion in revenue for the fourth quarter of 2025, up 15% from the same period in 2024. That beat analyst expectations of $111.43 billion.
But oh, it did not stop there. Earnings per share came in at $2.82, also above the $2.63 Wall Street was looking for.
The company’s net income for the quarter hit $34.46 billion, compared to $26.53 billion the year before. That’s a fat jump. Operating income was $35.93 billion, with a margin holding steady at 32%, exactly the same as last year.
Alphabet has now officially crossed $400 billion in annual revenue for the first time, finishing 2025 at $402.84 billion. CEO Sundar Pichai called the quarter “tremendous,” saying Gemini 3 helped push things forward in a big way.
AI boom boosts Google Cloud and Search revenue
AI was everywhere in this report. Sundar said the launch of Gemini 3 marked a key moment for Alphabet, with direct API usage processing over 10 billion tokens per minute.
The Gemini app now has over 750 million monthly active users, showing how fast adoption is happening. He said, “Search saw more usage than ever before, with AI continuing to drive an expansionary moment.”
That growth carried into the cloud. Google Cloud posted $17.66 billion in revenue, up from $11.96 billion in Q4 2024. The cloud unit’s annual run rate now stands above $70 billion, according to Sundar, who credited rising demand for AI products.
The cloud division pulled in $5.31 billion in operating income, more than doubling from $2.09 billion the year before. It’s one of the fastest-growing segments in the entire company.
Search also showed strength. Google Search and other services earned $63.07 billion, up from $54.03 billion in the same quarter of 2024.
Meanwhile, total ad revenue across Google platforms rose from $72.46 billion to $82.28 billion. YouTube advertising alone hit $11.38 billion, just short of the $11.84 billion StreetAccount expected, but still higher than last year’s $10.47 billion.
Alphabet’s full breakdown shows strong margins and rising costs
Alphabet’s operating income for the quarter rose to $35.93 billion, up from $30.97 billion. Full-year operating income totaled $129.04 billion, with no margin slippage. Net income for the full year rose to $132.17 billion, up from $100.12 billion in 2024. Diluted EPS for the year reached $10.81, compared to $8.04 last year.
The company’s traffic acquisition costs jumped to $16.60 billion, up from $14.85 billion a year earlier. They paid more to drive traffic, but revenue gains more than covered that rise. Google subscriptions, platforms, and devices brought in $13.58 billion this quarter, up from $11.63 billion.
Total headcount grew to 190,820 employees, up from 183,323 last year. Meanwhile, losses widened in the company’s “Other Bets” category, from -$1.17 billion to -$3.62 billion. That division only brought in $370 million in revenue, compared to $400 million last year.
Still, Alphabet’s core operations continue to deliver.
Google Services brought in $95.86 billion in Q4 2025, up from $84.09 billion. Operating income for this segment alone was $40.13 billion, up from $32.83 billion.
Alphabet’s “Other income” line also exploded, going from $1.27 billion to $3.18 billion in the quarter. For the full year, that figure skyrocketed to $29.79 billion, up from $7.43 billion.
Looking ahead, Sundar said the company is planning capital expenditures between $175 billion and $185 billion for 2026 to meet rising customer demand.
Sundar also said YouTube annual revenues across ads and subscriptions crossed $60 billion, backed by over 325 million paid subscribers to services like YouTube Premium and Google One.
Alphabet ended the year strong. It led the Magnificent Seven tech group in 2025, rising over 65%, and is still ahead in 2026 with a 6.3% gain. Its current market cap is $4.1 trillion, only 5% below Nvidia. It added over $2 trillion in market value in the last eight months.
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