Google has achieved a monumental financial milestone, reporting its fourth-quarter earnings for 2025 with annual revenue surpassing $400 billion for the first time in its history. The tech giant's parent company, Alphabet, announced these impressive results, marking a significant moment in the company's growth trajectory.
Record-Breaking Financial Performance
In the fourth quarter results for fiscal year 2025, Alphabet revealed that consolidated revenues increased by 18%, or 17% in constant currency terms, reaching an impressive $113.8 billion. This performance reflects what the company described as "strong momentum across the business and acceleration in growth in both Google Services and Google Cloud."
Google Services Revenue Breakdown
The company reported that Google Services revenues increased by 14% to $95.9 billion, driven by multiple growth areas:
- Google Search & other services grew by 17%
- Google subscriptions, platforms, and devices increased by 17%
- YouTube ads revenue grew by 9%
Google's video platform YouTube reported particularly strong performance, with revenue across ads and subscriptions exceeding $60 billion for the full year 2025.
Google Cloud's Remarkable Growth
Google Cloud demonstrated exceptional performance with revenues increasing by 48% to $17.7 billion. This growth was primarily driven by increased customer demand across Google Cloud Platform (GCP), particularly in enterprise AI Infrastructure and enterprise AI Solutions, as well as core GCP products. Google Cloud ended 2025 at an annual run rate of over $70 billion, representing a wide breadth of customers and strong demand for AI products.
CEO Sundar Pichai's Reaction
Announcing the results, Google CEO Sundar Pichai shared his excitement on social media platform X, calling Q4 2025 "a tremendous quarter." In his post, Pichai wrote: "Thanks to our partners & employees, it was a tremendous quarter, exceeding $400B in annual revenue for the first time."
In his official statement about the quarterly results, Pichai elaborated: "It was a tremendous quarter for Alphabet and annual revenues exceeded $400 billion for the first time. The launch of Gemini 3 was a major milestone and we have great momentum. Our first party models, like Gemini, now process over 10 billion tokens per minute via direct API use by our customers, and the Gemini App has grown to over 750 million monthly active users."
AI Driving Expansion
Pichai emphasized the role of artificial intelligence in Google's success, noting that "Search saw more usage than ever before, with AI continuing to drive an expansionary moment." He added that the company is "seeing our AI investments and infrastructure drive revenue and growth across the board."
Industry Recognition and Future Investments
The achievement garnered attention from industry leaders, with Elon Musk, the world's richest person, responding to Sundar Pichai's post with a congratulatory message. Musk simply wrote "Well done" in response to the Google CEO's announcement, acknowledging the tech giant's significant milestone.
Subscription Growth and Future Plans
Google now boasts over 325 million paid subscriptions across consumer services, led by strong adoption for Google One and YouTube Premium. Looking ahead, Pichai announced ambitious plans for continued growth: "To meet customer demand and capitalize on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185 billion."
This substantial investment plan underscores Google's commitment to maintaining its growth trajectory and capitalizing on emerging opportunities in the technology sector, particularly in artificial intelligence and cloud computing.
