Record Annual Revenue Surpasses $400B
Alphabet reported full-year 2025 consolidated revenues of $403.0 billion, up 15% year over year, marking the first time annual revenues exceeded $400 billion.
Strong Q4 Revenue and Profitability
Q4 consolidated revenues were $113.8 billion with operating income of $35.9 billion (operating margin 31.6%). Net income rose 30% to $34.5 billion and EPS increased 31% to $2.82.
Search Acceleration
Search and other advertising revenues grew 17% year over year to $63.1 billion in Q4 led by broad vertical strength (notably retail); Search usage and new AI experiences drove longer and more conversational sessions (AI mode queries ~3x longer).
Google Cloud Outstanding Growth
Google Cloud revenues accelerated 48% year over year to $17.7 billion in Q4. Cloud operating income more than doubled to an additional $5.3 billion and operating margin rose to 30.1% from 17.5% a year ago. Backlog grew 55% sequentially to $240 billion.
Generative AI Monetization Momentum
Revenue from products built on generative AI models grew nearly 400% year over year in Q4. More than 120,000 enterprises use Gemini; 95% of the top 20 and >80% of the top 100 SaaS companies use Gemini.
Gemini Adoption and Efficiency Gains
Gemini app surpassed 750 million monthly active users (added ~100M MAUs in Q4) with higher engagement since Gemini 3 launch. Gemini serving unit costs were lowered by 78% during 2025; first-party models process over 10 billion tokens per minute (up from 7 billion last quarter).
Enterprise Adoption of Gemini Enterprise
Alphabet sold over 8 million paid seats of Gemini Enterprise to more than 2,800 companies. Gemini Enterprise managed over 5 billion customer interactions in Q4, growing 65% year over year.
Strong Cash Generation and Capital Return
Record operating cash flow of $52.4 billion in Q4 and $160.5 billion for the full year; Q4 free cash flow $24.6 billion. Ended quarter with $120.8 billion in cash and marketable securities. Returned $5.5 billion in share repurchases and paid $2.5 billion in dividends in Q4.
YouTube and Content Engagement Strength
YouTube annual revenues surpassed $60 billion across ads and subscriptions. Shorts averages over 200 billion daily views; October 2025 viewers watched 700+ million hours of podcasts on living room devices (up 75% YoY). Creator and viewer AI tool adoption strong (1M channels used AI creation tools daily in December; 20M viewers used Gemini-powered tools).
Waymo Progress and Fundraising
Waymo raised its largest investment round, surpassed 20 million fully autonomous trips, and now provides over 400,000 rides per week while expanding geographically (new market: Miami, planned expansion in US, UK, Japan).