Alphabet, the parent company of Google and YouTube, reported a net profit of $132.17 billion for 2025, up 32% on the previous year, as investment in artificial intelligence fed through into growth across its businesses.
Record revenue
Annual revenue rose 15% to $402.84 billion, the first time the company has passed $400 billion. YouTube’s advertising and subscription businesses together generated around $60 billion.
A strong fourth quarter
In the final three months of the year:
- net profit rose 30% to $34.46 billion;
- revenue grew 18% to $113.83 billion;
- Google Services contributed $95.9 billion and Google Cloud $17.7 billion.
Services and Cloud
Google Services, built around search advertising and YouTube, remains the core of the business, and Alphabet reported 325 million paid subscriptions across its consumer services.
Google Cloud was the fastest-growing division, with revenue now running at an annual rate of around $70 billion, driven by companies adopting its AI-powered cloud services.
AI at the centre
Chief executive Sundar Pichai said the company’s AI investments and infrastructure were driving revenue and growth across the business. Alphabet said its Gemini app now has around 750 million monthly users.
To meet demand, Alphabet plans capital expenditure of $175–185 billion in 2026, roughly double the 2025 level, mostly on data centres and AI infrastructure.
Other Bets
The “Other Bets” division, which includes the self-driving car company Waymo, reported lower revenue of $370 million and a wider operating loss of $3.6 billion. Waymo recently raised $16 billion in a funding round led by Alphabet to expand its robotaxi service.
Investor reaction
The shares rose slightly in after-hours trading. With a market value of around $4 trillion, Alphabet is one of the three most valuable listed companies in the world.
The scale of its planned spending illustrates the race among technology giants to build AI capacity — and the growing debate about the energy and water those data centres consume.
