On February 5, Alphabet, the parent company of Google, unveiled its financial results for both the fourth quarter and the entire year of 2025. The figures reveal that Alphabet’s revenue for the fourth quarter soared to $113.828 billion, marking an 18% increase year-on-year (or 17% at constant currency rates). Its net profit for the same period climbed to $34.455 billion, a 30% surge from the previous year. For the full year, Alphabet’s revenue surpassed the $400 billion milestone for the first time, hitting $402.836 billion, up 15% year-on-year. Its net profit for the year reached $132.170 billion, a notable 32% increase from the year before.

A standout performer was Alphabet’s cloud business, with fourth-quarter revenue jumping 48% year-on-year to $17.7 billion. The annualized revenue for the cloud segment for the full year exceeded $70 billion, underscoring its rapid growth trajectory.

Alphabet also revealed plans to allocate between $175 billion and $185 billion in capital expenditures for 2026. The bulk of this investment will be directed toward AI infrastructure, encompassing servers, data centers, and network equipment, to alleviate the current strain on computing power supplies. CEO Sundar Pichai emphasized that AI investments are fueling growth across all of Alphabet’s business lines. To keep pace with customer demands and capitalize on emerging opportunities, he stated that a substantial increase in infrastructure investment is imperative.