Alphabet’s Q4 Earnings Surge on AI-Driven Growth
Alphabet Inc. reported a 15% year-over-year revenue increase to $113.83 billion in Q4 2025, with earnings per share reaching $2.82—surpassing Wall Street's $2.63 estimate. Net income soared to $34.46 billion from $26.53 billion the prior year, while operating income held steady at a 32% margin. The company crossed $400 billion in annual revenue for the first time, closing 2025 at $402.84 billion.
CEO Sundar Pichai attributed the 'tremendous' quarter to Gemini 3, which processed over 10 billion tokens per minute via API. The Gemini app now boasts 750 million monthly active users, fueling record Search usage. Google Cloud revenue jumped to $17.66 billion from $11.96 billion in Q4 2024, with operating income more than doubling to $5.31 billion. The division's $70 billion annual run rate underscores AI's transformative impact on Alphabet's growth trajectory.