Overview
- Alphabet reported EPS of $2.82 on revenue of $113.8 billion, with search and other revenue up 17% to $63.1 billion and YouTube ads up 9% to $11.4 billion.
- Google Cloud revenue jumped 48% to $17.7 billion as operating income surpassed about $5.3 billion, lifting segment margins to roughly 30%.
- The company guided 2026 capital expenditures of $175–$185 billion, with roughly 60% for servers and accelerators and 40% for data center construction and networking to ease capacity constraints.
- Full-year 2025 revenue reached $402.8 billion, marking Alphabet’s first year above $400 billion, as advertising revenue rose to $82.3 billion in the quarter.
- Gemini adoption accelerated to over 750 million monthly users and models processing more than 10 billion tokens per minute, with investor reaction turning volatile as shares fell more than 6% after hours before trimming losses.