Google parent company Aphabet's annual sales exceeded $400 billion (approximately 62 trillion yen) for the first time, and YouTube's annual revenue from advertising and subscriptions exceeded 9 trillion yen
Alphabet, Google's parent company, announced its financial results for the fourth quarter (October to December) and full year ending December 31, 2025, on February 4, 2026. Alphabet's annual sales exceeded $400 billion (approximately 62 trillion yen) for the first time, its cloud business reached $70 billion (approximately 1.1 trillion yen) in 2025, and YouTube recorded annual revenue of over $60 billion (approximately 9.3 trillion yen) from advertising and subscriptions.
Alphabet Announces Fourth Quarter and Fiscal Year 2025 Results
(PDF file)
Alphabet 2025 Q4 Earnings Call - YouTube
Google's annual revenue tops $400 billion for the first time | The Verge
https://www.theverge.com/news/874161/google-400-billion-revenue-q4-2025-earnings
Alphabet's consolidated revenue for the fourth quarter of fiscal year 2025 increased 18% year-over-year to $113,828 million (approximately ¥17.8 trillion) due to accelerated growth in Google Services and Google Cloud. Operating income for the same period increased 16% year-over-year to $35,934 million (approximately ¥5.61 trillion), and net income increased 30% year-over-year to $34,455 million (approximately ¥5.37 trillion).
For the full fiscal year 2025, Alphabet's annual sales exceeded the $400 billion mark for the first time, reaching $402.836 billion (approximately ¥62.8 trillion), up 15% from the previous year. Full-year operating profit was $129.039 billion (approximately ¥20.1 trillion), up 15% from the previous year, and net profit was $132.17 billion (approximately ¥20.6 trillion), up 32% from the previous year.
Fourth-quarter revenue for Google Services increased 14% year-over-year to $95.862 billion (approximately 15 trillion yen), driven by strong performance from Google Search and YouTube. Operating profit for the division was $40.132 billion (approximately 6.26 trillion yen), up 22% from $32.836 billion in the same period last year. Revenue breakdown: Google Search and Other increased 17%, YouTube Advertising increased 9%, and Subscriptions, Platforms & Devices increased 17%. YouTube's combined annual advertising and subscription revenue is expected to exceed $60 billion for the first time in 2025.
Additionally, the number of paid subscriptions for all consumer services has reached 325 million, with Gemini Enterprise paying seats exceeding 8 million in the four months since its launch, and Gemini's monthly active users exceeding 750 million.
Google Cloud revenue grew significantly, increasing 48% year-over-year to $17.664 billion (approximately JPY 2.76 trillion), driven by strong demand for AI infrastructure and solutions. The division's operating profit increased 154% to $5.313 billion (approximately JPY 829 billion), up from $2.093 billion in the same period last year. The company's AI investments are contributing to its profits, with its cloud business's annual revenue run rate exceeding $70 billion by the end of 2025.
Fourth-quarter revenue for the Other Bets segment, which primarily includes revenue from autonomous driving services, was $370 million (approximately ¥57.7 billion), down from $400 million in the same period last year. The segment's operating loss widened to $3.617 billion (approximately ¥564 billion), up from $1.174 billion (approximately ¥184 billion) in the same period last year. Operating expenses for the same period included $2.1 billion (approximately ¥328 billion) in employee compensation expenses related to Waymo, the autonomous driving division, which was the primary factor behind the wider loss.
Sundar Pichai, chairman and CEO of Google, said, 'Following the launch of Gemini 3, usage intensity per user has increased, and our AI investments and infrastructure are driving overall business growth.' He also predicted that the company will spend $175 billion to $185 billion in capital expenditures in 2026 to meet demand.
Pichai also stated that the company is pursuing a full-stack approach to AI, expanding its options for computing resources with both GPUs and its own TPUs, while also mentioning strengthening its data center and energy infrastructure. As an example of efficiency improvements, he mentioned that Gemini's cost per serving will be reduced by 78% by 2025. On the model side, he explained that Gemini 3 Pro is at the core of inference and multimodal understanding, and that adoption is progressing at the fastest pace.
On the product side, the integration of Gemini 3 into the search 'AI Mode' and 'AI Overview' has led to increased usage due to deeper understanding and interactive experiences. Furthermore, CEO Pichai emphasized that Google is simultaneously expanding in multiple areas, including the introduction of the ' Universal Commerce Protocol ,' a common standard for connecting AI agents with retail and payment systems, Project Genie , which creates a generative world, and the restructuring of Chrome with AI capabilities in mind .
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