Google Q4 2025 Earnings: $400 Billion Annual Revenue Record – CapEx 2026 Boom

Date: February 4, 2026
Ticker: GOOGL / GOOG
Topic: Q4 and Fiscal Year 2025 Earnings Summary

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Earnings Summary

• Revenue: Reported $113.8 billion vs. Expected ~$111.4 billion (Beat by ~2.2%). YoY Change: +18% (17% in constant currency).
• EPS: Reported $2.82 vs. Expected ~$2.64 (Beat by ~6.8%). YoY Change: +31%.
• Net Income: Net income rose 30% year-over-year, reflecting continued operating leverage despite heavy capital expenditures.
• CapEx: The expected capital expenditures (CapEx) for fiscal year 2026 are anticipated to be in the range of $175 billion to $185 billion

Financials Snapshot: Alphabet Inc. (Q4 2025)

Market Context

Alphabet’s ability to maintain >30% operating margins while absorbing a $2.1 billion charge for Waymo compensation highlights the sheer cash-generating power of its core business.

Metric	Q4 2025	Q4 2024	Q3 2025	Q2 2025	Q1 2025
Revenue	$113,828	$96,469	$102,346	$96,428	$90,234
Operating Income	$35,934	$30,972	$31,228	$31,271	$30,606
Operating Margin	32%	32%	31%	32%	34%
Net Income	$34,455*	$34,455	$34,979	$28,196	$34,540
EPS (Diluted)	$2.82	$2.15	$2.87	$2.31	$2.81
Free Cash Flow	$24,551	$24,837 (Est)*	$24,461	$5,301	$18,953
CapEx	$(27,851)	$(14,276)	$(23,953)	$(22,446)	$(17,197)

The 48% growth in Cloud revenue is the most notable trend, accelerating significantly from previous quarters. Operating margins remained healthy at 31.6% despite a significant one-time compensation charge for Waymo.

Full Year 2025 Financials

Metric	FY 2025	FY 2024	YoY Change
Total Revenues	$402,836	$350,018	+15%
Operating Income	$129,039	$112,390	+15%
Operating Margin	32%	32%	Flat
Other Income (Expense), net	$29,787	$7,425	+301%
Net Income	$132,170	$100,118	+32%
Diluted EPS	$10.81	$8.04	+34%

Crossing the $400 billion revenue mark is a historic achievement, driven by the dual engines of Search stability and Cloud hyper-growth.

Outlook: Q1 2026 & Beyond

While Alphabet typically does not provide specific revenue guidance, CEO Sundar Pichai’s commentary signaled continued aggressive investment.

• Gemini 3 Rollout: Monitor user feedback and adoption rates for the newly launched Gemini 3 model, particularly its integration into Search.
• Regulatory Headwinds: The ongoing DOJ antitrust trials remain a cloud over the stock, regardless of financial performance.
• Waymo Spin-off? The $2.1 billion compensation charge and external funding rounds for Waymo may reignite discussions about its potential spin-off or separate listing.
  AI Investment: The company emphasized that the launch of Gemini 3 is a major milestone and that “momentum” is building.
• Capex: Investors should expect capital expenditures to remain elevated as the company builds out the data center capacity required for its AI models, which are now processing over 10 billion tokens per week.
  Gemini 3 Rollout: Monitor user feedback and adoption rates for the newly launched Gemini 3 model, particularly its integration into Search.
• Regulatory Headwinds: The ongoing DOJ antitrust trials remain a cloud over the stock, regardless of financial performance.
• Waymo Spin-off? The $2.1 billion compensation charge and new $16.0 billion external investment round for Waymo may reignite discussions about its potential spin-off or separate listing.

Market & Price Trends

Alphabet shares had dipped slightly (~1.8%) heading into the print as the market tested the $4 trillion market cap level. However, this “beat and raise” style report—driven by the Cloud acceleration that investors were desperate to see—is likely to be viewed very positively. The results confirm that Alphabet is successfully navigating the platform shift to AI, similar to Microsoft, rather than being left behind.

This content is for informational purposes only and does not constitute financial advice; always conduct your own research before making investment decisions.