Alphabet (GOOG) Q4 2025 earnings summary

Executive summary

• Annual revenues surpassed $400 billion for the first time, with Q4 revenues up 18% year-over-year to $113.8 billion, driven by strong growth in Search, Cloud, and AI products.

• Net income for Q4 rose 30% year-over-year to $34.5 billion, and diluted EPS increased 31% to $2.82.

• Over 325 million paid subscriptions across consumer services, with strong adoption of Google One and YouTube Premium.

• Gemini 3 launch marked a major AI milestone, with over 8 million paid Gemini Enterprise seats sold and 750 million monthly active users for the Gemini app.

• Waymo completed a $16 billion investment round, mostly funded by Alphabet, and surpassed 20 million fully autonomous trips.

Financial highlights

• Full-year consolidated revenues reached $403 billion, up 15% year-over-year; Q4 revenues were $113.8 billion, up 18%.

• Q4 operating income was $35.9 billion, up 16% year-over-year, with an operating margin of 31.6%.

• Net income for Q4 was $34.5 billion, up 30% year-over-year; diluted EPS was $2.82, up 31%.

• Free cash flow for Q4 was $24.6 billion; trailing twelve months free cash flow reached $73.3 billion.

• Ended Q4 with $126.8 billion in cash and marketable securities and $46.5 billion in long-term debt.

Outlook and guidance

• 2026 capital expenditures are projected between $175 billion and $185 billion, focused on AI compute capacity and technical infrastructure.

• Anticipates continued strong demand for Cloud and AI products, with FX tailwinds expected in Q1 2026.

• Depreciation expense growth to accelerate in 2026 due to increased CapEx.

• Ongoing hiring in AI and Cloud expected.

• Forward-looking statements highlight risks and uncertainties; investors cautioned not to place undue reliance on projections.