Alphabet, Google's parent company, reported record-breaking earnings, surpassing $400 billion in annual revenue for the first time in 2025. The tech giant's fourth-quarter revenue jumped 18% year-on-year to $113.8 billion, driven by strong performance in search advertising and cloud computing.
Despite the milestone, Alphabet announced plans to nearly double its capital expenditures in 2026 to between $175 billion and $185 billion, primarily to expand AI infrastructure. CEO Sundar Pichai noted that demand for AI services continues to outpace supply, even as the company rapidly scales capacity.
Google’s Gemini AI platform saw significant growth, reaching 750 million monthly users—an increase of 100 million from the previous quarter. The cloud division also posted a notable 48% revenue increase to $17.7 billion.
While core search and YouTube advertising remained dominant revenue streams, Alphabet’s experimental “Other Bets” division, which includes self-driving unit Waymo, reported a $3.6 billion loss. Waymo recently raised $16 billion in a funding round led by Alphabet, boosting its valuation to $126 billion.
The company’s shares dipped slightly in after-hours trading following the earnings release.
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