01—Abstract
Summary
Summary of the 10-K filed February 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Alphabet Inc. reported strong revenue growth of 15% to $402.8 billiona 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%b 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 billionc 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.
02—Key points
Key Highlights
- Total revenues reached $402.8 billion, a 15% increase year-over-year.
- Google Services revenue grew 12% to $342.7 billion, driven by Search & other and YouTube ads.
- Google Cloud revenue surged 36% to $58.7 billion, demonstrating strong adoption of AI and cloud services.
- Operating expenses increased 22% to $273.8 billion, reflecting significant investments in R&D, infrastructure, and legal matters.
- Net income rose 32% to $132.2 billion, with diluted EPS increasing to $10.81.
- Capital expenditures were $91.4 billion, primarily for technical infrastructure, with expectations for significant increases in 2026.
- Alphabet returned $45.4 billion to shareholders through share repurchases and increased its quarterly dividend by 5%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Alphabet Inc. kept $0.33.
- Revenue$402.84B100.0%
- Cost of revenue−$162.53B40.3%
- Gross profit$240.30B59.7%
- Operating costs−$111.26B27.6%
- Operating income$129.04B32.0%
- Interest, other & tax$3.13B0.8%
- Net income$132.17B32.8%
Where FY2025 revenue went
$402.84B- Cost of revenue: $162.53B, 40% of revenue
- Operating income: $129.04B, 32% of revenue
- R&D: $61.09B, 15% of revenue
- Other operating costs: $50.17B, 12% of revenue
Kept 32% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 5, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $402.84B$350.02B | +15.1% |
| Cost of Revenue | $162.53B$146.31B | +11.1% |
| Gross Profit | $240.30B$203.71B | +18.0% |
| R&D Expenses | $61.09B$49.33B | +23.8% |
| Operating Expenses | $273.80B$237.63B | +15.2% |
| Operating Income | $129.04B$112.39B | +14.8% |
| Net Income | $132.17B$100.12B | +32.0% |
| EPS (Basic) | $10.91$8.13 | +34.2% |
| EPS (Diluted) | $10.81$8.04 | +34.5% |
| Shares Outstanding (Basic) | 12.12B12.32B | −1.6% |
| Shares Outstanding (Diluted) | 12.23B12.45B | −1.7% |
05—Questions
Frequently Asked Questions
What was Alphabet's overall financial performance for the year ended December 31, 2025?
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.
How did AI impact Alphabet's business and financial results in 2025?
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.
What are the key drivers of Alphabet's revenue 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.
What significant investments did Alphabet make, and how does this impact future growth?
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.
06—Continue