Alphabet/Google Revenues Up 18 Percent to $113.8 Billion

Alphabet/Google reported that it earned a net income of $34.5 billion on revenues of $113.8 billion in the quarter ending December 31, 2025. Those figures represent gains of 23 percent and 18 percent, respectively, year-over-year (YOY).

The firm also announced its revenues for fiscal year 2025: A net income of $100 billion on revenues of $402.8 billion, which are gains of 24.3 percent and 15 percent, respectively, YOY.

“It was a tremendous quarter for Alphabet and annual revenues exceeded $400 billion for the first time,” Alphabet and Google CEO Sundar Pichai said. “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.”

Google Services delivered revenues of $95.9 billion, with $63 billion coming from Google Search, $11.4 billion from YouTube advertising, $7.8 billion from Google Network, and $13.6 billion from Google subscriptions, platforms, and devices. Overall, $82.3 billion in revenues were directly attributable to advertising, so 74 percent of Alphabet/Google’s revenues in the quarter were ad-based.

Google Cloud added $17.6 billion in revenues, a gain of 12.3 percent YOY. Google noted that this business is now on an annual run rate of over $70 billion, driven by demand for AI products across “a wide breadth of customers.” Other Bets contributed $370 million in revenues and Hedging Gains/Losses posted a loss of $68 million.

But here’s the hammer falling: Google says that it will spend $175 billion to $185 billion on AI-related capital expenditures, more than the $150+ billion I expect Microsoft to spend, and up dramatically from the $91.4 billion it spent in 2025. Yikes.