Recommended Free Tools
Alphabet reported $113.828 billion in revenue for the quarter ended December 31, 2025, up 18% year over year, as Google Search and Google Cloud both grew. Net income reached $34.455 billion. The larger question for the year ahead is whether the company can earn adequate returns on its forecast $175 billion to $185 billion in 2026 capital spending, much of it aimed at expanding AI infrastructure.
What does the 18% increase measure?
The 18% figure is Alphabet’s consolidated revenue growth for the fourth quarter of 2025 compared with the same quarter in 2024: revenue rose from $96.469 billion to $113.828 billion. On a constant-currency basis, growth was 17%, meaning currency movements added about one percentage point to the reported rate. These figures cover Alphabet, the parent company—not Google Services alone. Alphabet’s results release was published February 4, 2026.
As an Amazon Associate I earn from qualifying purchases.
Revenue grew faster than operating income
Alphabet’s operating income increased 16%, slower than revenue, and its operating margin edged down. Net income and diluted earnings per share grew more quickly than operating income, so the bottom-line increase should not be read as a measure of operating growth alone.
| Metric | Q4 2024 | Q4 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $96.469 billion | $113.828 billion | +18% |
| Operating income | $30.972 billion | $35.934 billion | +16% |
| Operating margin | About 32.1% | 31.6% | Lower |
| Net income | $26.536 billion | $34.455 billion | About +30% |
| Diluted earnings per share | $2.15 | $2.82 | About +31% |
For additional context on the annual result, Alphabet’s 2025 filing says other income included approximately $24.1 billion in net gains on equity securities. That annual figure is not a breakdown of the quarter’s net-income increase, but it illustrates why investment gains can affect reported profit separately from the performance of Search, Cloud, and other operations. Alphabet’s 2025 annual filing also details the company’s rising infrastructure costs.
#1 Best Overall
- Attention-grabbing design meets the latest evolution of the Google Pixel Camera on the new Google Pixel 11 Pro; Gemini Intelligence helps manage details so you can live in the moment[1]; and the phone is available in two sizes
- Unlocked Android phone gives you the flexibility to change carriers and choose your own data plan: Works with Google Fi, Verizon, T-Mobile, AT&T, and other major carriers[2]
- Stay informed without looking at your screen: When your phone is face down, Pixel HiLight gently alerts you with subtle glowing lights when your favorite contacts are calling or you’re talking with Gemini; exclusive to Google Pixel 11 Pro phones
- Magic Capture catches the moment as you live it: With just one tap, Pixel 11 Pro captures video and photos, and automatically edits, crops, and unblurs a curated collection, ready to share – and you get the memory of how it felt to be in the moment
- Two new cameras for more brilliant photos: A larger telephoto sensor captures 30% more light for clear, beautiful photos and videos, even in the dark[3]; Pixel’s longest zoom ever helps you capture details from impressive distances[4]
Search grew, but AI’s effect on its economics is unresolved
Google Search & other revenue grew 17% year over year in Q4. Alphabet said strong usage and AI-related developments supported Search. The reported growth shows that the business was expanding in this quarter; it does not settle whether AI will strengthen search advertising over the long term.
AI features could encourage more queries, improve results for commercial searches, or create new advertising opportunities. But AI-generated answers may change how users reach websites and interact with traditional search ads. They can also require more computing capacity. The relevant test is whether new formats and usage produce enough advertising value to offset any changes in clicks and the higher cost of serving queries.
Advertising still dominates Google Services
Google Services generated $95.9 billion in Q4 revenue, up 14%. A breakdown of reported figures put Search and other at about $63.0 billion, YouTube advertising at $11.4 billion, Google Network at $7.8 billion, and subscriptions, platforms, and devices at $13.6 billion. Thurrott’s breakdown provides these approximate category amounts.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Rank #2
- Google Pixel 10a is a durable, everyday phone with more[1]; snap brilliant photography on a simple, powerful camera, get 30+ hours out of a full charge[2], and do more with helpful AI like Gemini[3]
- Unlocked Android phone gives you the flexibility to change carriers and choose your own data plan; it works with Google Fi, Verizon, T-Mobile, AT&T, and other major carriers
- Pixel 10a is sleek and durable, with a super smooth finish, scratch-resistant Corning Gorilla Glass 7i display, and IP68 water and dust protection[4]
- The Actua display with 3,000-nit peak brightness shows up clear as day, even in direct sunlight[5]
- Plan, create, and get more done with help from Gemini, your built-in AI assistant[3]; have it screen spam calls while you focus[6]; chat with Gemini to brainstorm your meal plan[7], or bring your ideas to life with Nano Banana[8]
| Google Services category | Q4 2025 revenue | Share of Google Services revenue, approximately |
|---|---|---|
| Search and other | $63.0 billion | 66% |
| YouTube advertising | $11.4 billion | 12% |
| Google Network | $7.8 billion | 8% |
| Subscriptions, platforms, and devices | $13.6 billion | 14% |
The amounts are rounded and sum to about $95.8 billion, close to the reported $95.9 billion total. Search, YouTube advertising, and Network together contributed about $82.2 billion—roughly 86% of Google Services revenue—so advertising remains the dominant engine. The categories are not all advertising: subscriptions, platforms, and devices include non-advertising revenue, and Google Services is only one of Alphabet’s operating segments.
Within Google Services, subscriptions, platforms, and devices revenue rose 17%, while YouTube advertising increased 9%. Those rates show different growth patterns within the segment; they do not make the total Google Services growth rate interchangeable with advertising growth.
Cloud is growing quickly, but revenue is not profit
Google Cloud revenue rose 48% year over year to approximately $17.7 billion. Alphabet credited demand across Google Cloud Platform infrastructure, enterprise AI infrastructure, enterprise AI solutions, and core GCP products. Its growth rate was substantially higher than Google Services’ 14%, making Cloud an increasingly important source of revenue beyond advertising.
However, revenue growth alone does not show how much profit Cloud generates or whether AI infrastructure earns an adequate return. The cost of data centers, servers, networking, and power matters alongside sales. Cloud can diversify Alphabet’s revenue while still facing pressure to convert that growth into durable margins.
YouTube’s $60 billion milestone includes subscriptions
Alphabet said YouTube generated more than $60 billion in combined advertising and subscription revenue for full-year 2025. This is an annual total across those two sources, not YouTube advertising revenue alone and not a Q4 figure. It indicates scale, but it should not be compared directly with the quarter’s $11.4 billion in YouTube advertising revenue.
Alphabet plans a sharp increase in infrastructure investment
Alphabet forecast 2026 capital expenditures of $175 billion to $185 billion, compared with $91.4 billion in 2025. Relative to 2025, the range implies an increase of roughly 92% to 102%, depending on where actual spending lands. It is management’s forecast, not a guaranteed final expenditure. The company said the investment is primarily for technical infrastructure, including servers, networking equipment, and data centers, to support demand that includes AI.
Rank #4
- Google Pixel 10 Pro is the ultimate Pixel experience, featuring advanced AI with Gemini, unbelievable camera quality, impeccable design in two sizes, and the next-gen Google Tensor G5 chip[1]
- Unlocked Android phone gives you the flexibility to change carriers and choose your own data plan[2]; it works - Google Fi, Verizon, T-Mobile, AT&T, and other major carriers
- Get a head start on syncing your data before it even arrives: After you purchase your new Pixel, look for an email that explains how to transfer your photos, videos, passwords, and more in just a few quick steps[11]
- Pixel’s pro camera system makes everything look amazing, even in low light; capture more of the scene with advanced Google AI models, and bring out incredible details with 100x Pro Res Zoom, stunning 50 MP images, and super steady videos in 8K[10]
- Pixel 10 Pro is built with durable aluminum and Corning Gorilla Glass Victus 2 for scratch and drop resistance; the 6.3-inch Super Actua display with 3,300-nit peak brightness is easy on the eyes, even in direct sunlight[3,13,18]
The ramp follows an already substantial rise: Alphabet spent $52.5 billion on capital expenditures in 2024 and $91.4 billion in 2025. Its property-and-equipment depreciation increased from $15.3 billion in 2024 to $21.1 billion in 2025, according to the annual filing.
Why capex and expenses affect the business differently
Capital expenditures are cash used to acquire or build long-lived assets. The cash leaves as the assets are purchased or constructed, while accounting expense is generally recognized over time through depreciation. That timing difference means a large investment year can weigh heavily on cash generation before all of its cost appears in operating expenses. As equipment enters service, depreciation adds to ongoing costs; power, maintenance, and network capacity add further demands.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →What must go right for the investment to pay off
- Demand: Customers must continue to buy Cloud and AI services at a scale that uses the added capacity.
- Pricing and margins: AI products need to generate revenue at prices that cover computing and operating costs.
- Utilization: Servers and data centers must be used enough to justify their construction and depreciation costs.
- Search economics: AI-enhanced Search must sustain commercial value even as the user experience and advertising formats evolve.
- Capacity constraints: Energy, equipment, and network costs must remain manageable as infrastructure expands.
Alphabet’s annual filing specifically warns that AI infrastructure can raise depreciation, energy, equipment, and network-capacity costs. More capacity may enable growth, but the spending itself does not prove that the resulting services will be profitable.
Best Value
- Google Pixel 7 is powered by Google Tensor G2; it’s faster, more efficient, and more secure, with the best photo and video quality yet on Pixel[1].Other camera description:Front,Rear.Bluetooth Version 5.2 with dual antennas for enhanced quality and connection.
- Unlocked Android 5G phone gives you the flexibility to change carriers and choose your own data plan[2]; works with Google Fi, Verizon, T-Mobile, AT&T, and other major carriers
- Pixel’s Adaptive Battery can last over 24 hours; when Extreme Battery Saver is turned on, it can last up to 72 hours[3]
- The 6.3-inch Pixel 7 display is super sharp, with rich, vivid colors; it’s fast and responsive for smoother gaming, scrolling, and moving between apps[4]
- Google Pixel 7 has wide and ultrawide lenses with up to 8x Super Res Zoom[5]; and Cinematic Blur brings more drama to your videos
Usage figures indicate adoption, not monetization
Alphabet reported that its first-party Gemini models processed more than 10 billion tokens per minute through direct customer API use, and that the Gemini app had more than 750 million monthly active users. It also reported record Search usage. These are company-reported usage measures: tokens processed do not equal revenue, and monthly active users do not reveal engagement depth, conversion, or revenue per user.
That distinction matters when assessing the infrastructure forecast. Usage can signal demand, but investors and customers still need evidence that demand translates into profitable services and efficient use of the expanded capacity.
Full-year 2025 revenue crossed $400 billion
Alphabet reported $402.836 billion in full-year 2025 revenue, up 15% from $350.018 billion in 2024. Net income was $132.170 billion, compared with $100.118 billion; operating income was $129.039 billion, compared with $112.390 billion; and diluted EPS was $10.81, up from $8.04. The $400 billion milestone is an annual result, not a quarterly run rate.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstall| Full-year metric | 2024 | 2025 |
|---|---|---|
| Revenue | $350.018 billion | $402.836 billion |
| Operating income | $112.390 billion | $129.039 billion |
| Net income | $100.118 billion | $132.170 billion |
| Diluted earnings per share | $8.04 | $10.81 |
The annual net-income increase should also be viewed in light of the equity-security gains disclosed in other income. Strong reported earnings are important, but they do not mean all of the improvement came from recurring operating activity or AI monetization.
How to judge the next stage
The quarter presents a company with growing core Search revenue, rapid Cloud expansion, and substantial advertising exposure. Its AI activity is visible in usage measures and in planned infrastructure investment, but those indicators answer different questions: usage shows adoption, capex shows management’s expected need for capacity, and neither alone establishes investment returns.
The clearest measures to watch are whether Search continues to monetize as AI changes results, whether Cloud growth converts into profit, and whether revenue from AI services makes the higher infrastructure and depreciation burden worthwhile. A strong quarter establishes momentum; it does not yet resolve the economics of the next investment cycle.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Free tools Windows power users keep installed
One-click scans. No signup required.
