Alphabet, Google’s parent company, had a great 2025, to say the least.
The company has announced that, for the first time, it exceeded US$400 billion in annual revenue.
Alphabet Exceeds Expectations
According to a report by 9to5Google, Alphabet also shared its Q4 2025 earnings, announcing that it earned US$113.8 billion in revenue.
This figure is an 18% increase from the US$96.5 billion in revenue recorded in Q4 2024.
An operating income of US$35.93 billion, and a net income of US$34.46 billion has also been reported for Q4 2025.
In his remarks during the 2025 Q4 earnings call, Google and Alphabet CEO Sundar Pichai highlighted major milestones:
- Search continued to accelerate with revenues growing 17%
- YouTube’s annual revenues surpassed $60 billion across ads and subscriptions
- Cloud significantly accelerated with revenues growing 48%, now on an annual run rate of over $70 billion
- Backlog grew by 55% quarter over quarter to $240 billion, representing a wide breadth of customers, driven by demand for AI products.
- 325 million paid subscriptions across consumer services, with strong adoption for Google One and YouTube Premium
- Gemini App now has over 750 million monthly active users
AI Drives Revenue for Alphabet
According to Pichai, “Overall, we’re seeing our AI investments and infrastructure drive revenue and growth across the board.”
Pichai likewise provided an update on Alphabet’s progress with its AI developments.
The Alphabet CEO highlighted how AI has been integrated across the company’s different products and services. He provided a variety of examples, including the introduction of AI features to Gmail and the launch of Personal Intelligence in AI Mode in Search and the Gemini app.
Aside from these, Pichai highlighted how Search saw more usage in Q4 and the integration of Gemini 3 directly to AI Mode.
“We’ve also made the Search experience more cohesive, ensuring the transition from an AI Overview to a conversation in AI Mode is completely seamless,” he said. “These new experiences are proving to be more helpful and are driving greater usage.”
Originally published on ibtimes.com.au