Alphabet Inc. beats Q4 estimates as revenue jumps 18%, profit up 30%

Beating market expectations for fourth-quarter, Alphabet Inc. on Wednesday reported an 18% rise in consolidated revenues to $113.8 billion and a 30% increase in profit from the prior year to $34.5 billion.

The Google parent said annual revenues crossed USD 400 billion for the first time in 2025, providing further evidence that its internet empire is not only withstanding an artificial intelligence shakeup but its AI tools are also beginning to translate into material financial gains across its businesses.

While net income climbed 30%, earnings per share increased 31% to $2.82.

Revenue from Google Services rose 14% to $95.9 billion in the quarter, led by a 17% increase in Search and other revenue and a similar rise in subscriptions, platforms and devices.

YouTube advertising revenue grew 9%, while total YouTube revenue from ads and subscriptions exceeded $60 billion for the full year.

Google Cloud, which oversees the data centres behind many AI services, posted its fastest growth in years, with quarterly revenue jumping 48% to $17.7 billion.

Operating income rose 16%, though Alphabet said results included a $2.1 billion employee compensation charge linked to its autonomous driving unit Waymo. Operating margin stood at 31.6%.

Chief executive Sundar Pichai said the launch of Gemini 3 in December had accelerated user engagement and enterprise adoption.

“Our first-party models, like Gemini, now process over 10 billion tokens per minute via direct API use by our customers,” Pichai said in a statement.

He said that Search saw record usage as AI expanded how people interact with the product.

Alphabet said it now has more than 325 million paid subscriptions across consumer services such as Google One and YouTube Premium, and has sold over eight million paid seats of Gemini Enterprise since its launch four months ago.

Google Cloud ended 2025 with an annual run rate above $70 billion, the company said.

“We’re seeing our AI investments and infrastructure drive revenue and growth across the board,” Pichai said.