Google’s parent company Alphabet surpasses $400 billion in annual revenue as AI investments fuel a 48% surge in cloud computing sales
SAN FRANCISCO: Alphabet Inc. announced record-breaking financial results for the final quarter of 2025, with annual revenue exceeding $400 billion for the first time.
The Google parent company reported quarterly revenue of $113.8 billion, an 18% year-on-year increase driven by its core search business and surging cloud computing sales.
“We’re seeing our AI investments and infrastructure drive revenue and growth across the board,” said Alphabet chief executive Sundar Pichai.
Profit for the quarter reached $34.5 billion as revenue from cloud computing soared 48% to $17.7 billion.
This strong performance comes alongside a massive ramp-up in capital spending to meet AI demand.
The company expects capital expenditures between $175 billion and $185 billion in 2026, doubling its 2025 spending to support customer demand for AI products.
Google’s core search and advertising business remained the primary revenue driver, generating $82.3 billion.
YouTube advertising revenues also grew strongly to $11.4 billion from $10.5 billion a year earlier.
The company now counts over 325 million paid subscriptions across consumer services like Google One and YouTube Premium.
Google’s cloud division, competing with Amazon Web Services and Microsoft Azure, has become a key growth engine.
Its Gemini AI service ended the year with 750 million monthly users.
Despite overall robust growth, Alphabet’s experimental “Other Bets” division posted a loss of $3.6 billion on revenues of just $370 million.
Google’s shares gained slightly more than 2% in after-market trades following the earnings announcement.
