Alphabet Inc., the parent company of Google, has achieved a historic milestone by recording annual revenues exceeding $400 billion in 2025 for the first time. The landmark performance reflects strong momentum across its core businesses, supported by rising demand for artificial intelligence, digital advertising, video streaming and cloud services.
In its full-year earnings statement, Alphabet reported revenues of about $403 billion, representing around 15 per cent growth compared to the previous year. The company also delivered a robust final quarter, generating nearly $114 billion in revenue, comfortably beating analysts’ expectations and underscoring steady business expansion through the year.
Chief Executive Officer Sundar Pichai said the results demonstrate the strength of Alphabet’s long-term strategy, particularly its focus on AI-led innovation. He noted that artificial intelligence is now deeply integrated across Google’s products, improving performance, user engagement and monetisation.
Google’s search and advertising business continued to be the biggest contributor to revenues, helped by better ad targeting and the rollout of AI-powered search features. YouTube also posted solid gains, with advertising and subscription income together crossing $60 billion during 2025. Growth was driven by higher viewer engagement, strong demand for premium subscriptions and sustained interest from advertisers.
Google Cloud emerged as another major growth engine, as enterprises increasingly adopted cloud infrastructure and AI-based tools. The cloud division recorded sharp revenue growth during the year and continued to improve margins, strengthening its position in a highly competitive market.
Alphabet’s push into generative AI has been a key highlight. Its Gemini AI platform has rapidly scaled, attracting hundreds of millions of monthly users. The company said Gemini is being embedded across multiple services, from search and productivity tools to cloud offerings, helping unlock new revenue opportunities.
The strong revenue growth was matched by a rise in net profit, supported by higher scale and operational efficiencies. Looking ahead, Alphabet announced plans to significantly step up capital expenditure in 2026, with major investments planned for data centres, chips and AI infrastructure to support future demand.
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