Alphabet closed Q4 2025 with one of the strongest financial performances in its history, driven by aggressive AI expansion and sustained growth across its core businesses. The company reported quarterly revenue of $113.8 billion, reflecting an 18 percent year-over-year increase and beating market expectations.
Profitability accelerated even faster. Net income climbed 30 percent to $34.5 billion, while earnings per share rose 31 percent to $2.82. For the full year, Alphabet crossed a major milestone as total revenue exceeded $400 billion for the first time.
Core Business Performance Highlights
- Google Services revenue reached about $95.9 billion in Q4, up 14 percent
- Search, YouTube ads and subscriptions remained key growth drivers
- YouTube generated more than $60 billion in 2025 from ads and subscriptions combined
- Paid subscriptions across Alphabet platforms surpassed 325 million
Cloud and AI Momentum
Google Cloud continued to be the fastest-growing segment, with revenue rising 48 percent year over year to $17.7 billion. Demand for AI infrastructure and enterprise cloud workloads remained strong throughout the quarter.
The Gemini AI app scaled rapidly, reaching more than 750 million monthly active users by late 2025, signaling deep integration across consumer and enterprise products.
Capital Spending Outlook
| Metric | Value |
| 2026 capital expenditure forecast | $175B to $185B |
| Primary investment focus | AI infrastructure, data centers, custom chips |
Alphabet plans to nearly double capital spending in 2026, underlining how central AI has become to Google’s long-term strategy and competitive positioning.
