Alphabet Q4 Revenue Jumps 18% YoY, Full Year Top Line Crosses $400 Bn Mark

Google parent Alphabet Inc released its quarterly results for the quarter ended-December 31, 2025 (Q4). It reported 18% year-on-year (YoY) increase in consolidated revenue to $113.8 billion as compared to $96.5 billion in the year ago period. This reflected strong momentum across the business and acceleration in growth in both Google Services and Google Cloud.

Point to note: Alphabet reports its financial results on a quarterly basis (Q1-Q4) that aligns with the calendar year. Therefore, its fiscal year ended on December 31, 2025.

Google Services revenue increased 14% to $95.9 billion, led by 17% growth in Google Search and others, 17% in Google subscriptions, platforms and devices, and 9% in YouTube ads.

YouTube revenue across ads and subscriptions exceeded $60 billion for the full year 2025, while Google Cloud saw a continued increase in customer demand as revenue increased 48% to $17.7 billion, led by an increase in Google Cloud Platform (GCP) across enterprise AI Infrastructure and enterprise AI Solutions, as well as core GCP products.

Consolidated operating income increased 16% and operating margin was 31.6%. Operating income included a $2.1 billion employee compensation charge for Waymo. Net income (profit) increased 30% and Earnings Per Share (EPS) increased 31% to $2.82.

"It was a tremendous quarter for Alphabet and annual revenue exceeded $400 billion for the first time. The launch of Gemini 3 was a major milestone and we have great momentum," CEO Sundar Pichai said. He added that Gemini App has grown to over 750 million monthly active user.

Alphabet said it expects capital expenditures between $175 billion and $185 billion in fiscal year 2026, citing growing demand for its AI products after spending $105.7 billion in 2025. Its headcount increased by 4% to 190,820 employees in the period under review from 183,323 employees in Q4 2024.

Notably, Alphabet employs roughly 14,000 people in India and is planning to double the headcount by increasing its office space in the country, Bloomberg recently reported. The company is planning a significant expansion to accommodate up to 20,000 additional employees and has already leased one office tower and secured options to lease two more at in Bengaluru.

The first tower, spread across about 650,000 square feet and if all three towers are eventually occupied, the total office space could reach around 2.4 million square feet, the report added.

The move comes amid tightening immigration policies in US, making it difficult and costly for US companies to move foreign talent to America. This has driven the companies to open Global Capability Centres (GCCs) in cuntries like India.