Alphabet Smashes Q4 Revenue Records: $113.83 Billion Marks 15% Year-Over-Year Surge
Tech Titan's Earnings Blow Past Expectations
The numbers are in—and they're staggering. Alphabet just closed its latest quarter with a revenue haul that would make even the most bullish Wall Street analyst do a double-take. We're talking about a fifteen percent jump compared to the same period last year. That's not just growth; it's dominance on a scale that redefines the market.
Decoding the Dominance
Forget incremental gains. This is a masterclass in scaling a digital empire. The surge points to core engines firing on all cylinders—advertising, cloud, and the innovation pipeline—all pulling in the same, highly profitable direction. It’s a level of execution that leaves competitors scrambling for answers.
The Bottom Line for Big Tech
When a behemoth adds double-digit percentage points to a revenue base already measured in the hundreds of billions, it sends a shockwave through the sector. It resets the benchmark for what 'strong performance' looks like and puts immense pressure on everyone else to keep up. It’s the kind of report that has traditional finance managers nervously adjusting their spreadsheets, wondering if their beloved 'moats' are just shallow puddles compared to this tech-driven flood of cash.
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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