Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) reported fourth-quarter financial results Wednesday after market close.
Here are the key highlights.
Alphabet Q1 Earnings
Alphabet reported fourth-quarter revenue of $113.83 billion. The revenue total beat a Street consensus estimate of $111.31 billion according to data from Benzinga Pro.
Total revenue was up 18% on a year-over-year basis, driven by double-digit growth across all segments. Here’s a breakdown of revenue by category.
- Google Search: $63.07 billion, up from $54.03 billion year-over-year
- YouTube Advertising: $11.38 billion, up from $10.47 billion year-over-year
- Google Network: $7.83 billion, down from $7.95 billion year-over-year
Overall Google Advertising segment revenue was $82.28 billion, up from $72.46 billion year-over-year.
The company also reported the following segment:
- Google Cloud: $17.66 billion, up from $11.96 billion year-over-year
- Google Subscriptions, Platforms, Devices: $13.58 billion, up from $11.63 billion year-over-year
The company said Google Cloud saw continued increases in customer demand with revenue up 48% year-over-year.
YouTube revenue exceeded $60 billion for the full 2025 fiscal year, the company said.
The company reported fourth-quarter earnings per share of $2.82, beating a Street consensus estimate of $2.63.
Alphabet's operating income was up 16% year-over-year in the fourth quarter.
Alphabet CEO Commentary on Q4
"It was a tremendous quarter for Alphabet and annual revenue exceeded $400 billion for the first time," Alphabet CEO Sundar Pichai said.
Pichai said the launch of Gemini 3 was "a major milestone" that has great momentum.
"Our first party models, like Gemini, now process over 10 billion tokens per minute via direct API use by our customers, and the Gemini App has grown to over 750 million monthly active users."
The Alphabet CEO said Google Search had more usage than ever before, with AI helping drive the way.
"We continue to drive strong growth across the business."
Pichai also highlighted Alphabet having over 325 million paid subscriptions for its consumer services, with Google One and YouTube Premium leading the way.
Alphabet's Google Cloud ended the fiscal year with an annual run rate of over $70 billion.
"We're seeing our AI investments and infrastructure drive revenue and growth across the board."
Pichai said 2026 CapEx investments are expected to be in a range of $175 billion to $185 billion.
GOOGL Stock Price Action
Alphabet stock is down 1.8% to $327.00 in after-hours trading Wednesday versus a 52-week trading range of $140.53 to $349.00.
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