10-KPeriod: FY2025

Alphabet Inc. Annual Report, Year Ended Dec 31, 2025

Filed February 5, 2026For Securities:GOOGLGOOGGOOGMGOOGN

Summary

Alphabet Inc. reported strong revenue growth of 15% to $402.8 billion for the year ending December 31, 2025, driven by significant increases in both Google Services and Google Cloud. The company's AI-first strategy continues to be a core focus, with AI capabilities being integrated across its product ecosystem and cloud offerings. Google Services, its largest segment, saw a 12% revenue increase, with Google Search & other and YouTube ads showing robust performance, supported by advancements in AI-driven ad formats and improved user engagement. Google Cloud demonstrated substantial growth, with revenues up 36%, indicating strong adoption of its AI-optimized infrastructure and Google Workspace solutions. Despite the strong top-line performance, operating expenses grew by 22%, largely due to increased investments in technical infrastructure, research and development, and significant legal and other matters, including a $3.5 billion EC fine. The company returned approximately $45.4 billion to shareholders through share repurchases and increased its quarterly dividend by 5%. Alphabet ended the year with a strong liquidity position and continues to invest heavily in capital expenditures, particularly in technical infrastructure to support AI growth, with significant further investments planned for 2026.

Financial Highlights

52 data points
Beta

Revenue

$402.84B

59.7% Gross Margin

Net Income

$132.17B

32.8% Net Margin

EPS (Diluted)

$10.81

Total Assets

$595.28B

Cash & Equivalents

$30.71B

Free Cash Flow

$73.27B

Financial Statements
Beta
Revenue$402.84B
Cost of Revenue$162.53B
Gross Profit$240.30B
R&D Expenses$61.09B
Operating Expenses$273.80B
Operating Income$129.04B
Net Income$132.17B
EPS (Basic)$10.91
EPS (Diluted)$10.81
Shares Outstanding (Basic)12.12B
Shares Outstanding (Diluted)12.23B

Key Highlights

  • 1Total revenues reached $402.8 billion, a 15% increase year-over-year.
  • 2Google Services revenue grew 12% to $342.7 billion, driven by Search & other and YouTube ads.
  • 3Google Cloud revenue surged 36% to $58.7 billion, demonstrating strong adoption of AI and cloud services.
  • 4Operating expenses increased 22% to $273.8 billion, reflecting significant investments in R&D, infrastructure, and legal matters.
  • 5Net income rose 32% to $132.2 billion, with diluted EPS increasing to $10.81.
  • 6Capital expenditures were $91.4 billion, primarily for technical infrastructure, with expectations for significant increases in 2026.
  • 7Alphabet returned $45.4 billion to shareholders through share repurchases and increased its quarterly dividend by 5%.

Frequently Asked Questions

Alphabet reported strong financial performance, with total revenues increasing by 15% to $402.8 billion. Net income grew by 32% to $132.2 billion, and diluted earnings per share increased to $10.81, reflecting robust growth across its key segments.

AI is a central theme, with the company actively integrating AI into its products and services. This AI-first approach is driving user engagement and monetization, particularly in Google Services (Search, YouTube) and Google Cloud. The significant increase in R&D and capital expenditures is largely directed towards supporting AI development and infrastructure, which is expected to continue driving future revenue and growth.

Revenue growth was primarily driven by Google Services, with strong performance in Google Search & other and YouTube ads, benefiting from AI enhancements and increased advertiser spending. Google Cloud also contributed significantly with a 36% revenue increase, indicating strong demand for its AI infrastructure and enterprise solutions. Growth in subscription services also played a role.

Alphabet significantly increased its capital expenditures, investing $91.4 billion primarily in its technical infrastructure to support AI capabilities and user growth, with further substantial increases planned for 2026. The company also continued its investment in research and development and made strategic acquisitions, such as Wiz and Intersect, to enhance its cloud security and infrastructure offerings, signaling a commitment to long-term growth and innovation, particularly in AI and cloud computing.