Alphabet Inc., the parent of Google, has delivered a robust second-quarter result that exceeded expectations across revenue and earnings, but investors are now turning their attention to the company’s ambitious capital spending plans.
Alphabet Q4 2025 Earnings Summary
Alphabet, the parent company of Google, reported fourth quarter 2025 results with $113.8 billion in revenue, an 18% increase from the same period last year. Full year revenue reached $402.8 billion, crossing the $400 billion threshold for the first time.
The Google Services segment, which includes Search, YouTube, and subscriptions, generated $95.9 billion during the quarter. Search revenue increased 17% as AI features drove additional user engagement with the platform. YouTube’s combined advertising and subscription revenue totaled over $60 billion for the full year. The company reported 325 million paid subscribers across its consumer services, including YouTube Premium and Google One.
Google Cloud revenue increased 48% to $17.7 billion, bringing annual revenue to over $70 billion. The growth was attributed to demand from enterprise customers for AI infrastructure and solutions, as well as core cloud platform products.
Operating income reached $35.9 billion, a 16% increase year over year, while net income rose 30% to $34.5 billion. Earnings per share increased 31% to $2.82. The results included a $2.1 billion employee compensation charge related to Waymo, the autonomous vehicle subsidiary, which recently secured a $16 billion investment round primarily funded by Alphabet.
The company projected capital expenditures between $175 billion and $185 billion for 2026, compared to $91.4 billion spent in 2025. These investments will primarily fund data center infrastructure for AI computing. To finance this spending, Alphabet completed a $20 billion bond sale, its largest dollar denominated offering, which attracted over $100 billion in investor orders. The company also issued $24.8 billion in senior unsecured notes in November 2025.
The Gemini AI platform reported over 750 million monthly active users, with API customers processing over 10 billion tokens per minute.
Alphabet declared a quarterly dividend of $0.21 per share, payable March 16, 2026. The company generated $73.3 billion in free cash flow over the trailing twelve months and held $126.8 billion in cash and marketable securities at quarter end. Long term debt increased to $46.5 billion from $10.9 billion at the end of 2024, reflecting the recent bond issuances.
The Other Bets segment, which includes Waymo, reported an operating loss of $3.6 billion for the quarter, compared to a $1.2 billion loss in the prior year period.
