Alphabet, the parent company of Google, announced impressive financial results on Wednesday, with revenue increasing due to significant investments in cloud computing services powered by artificial intelligence. The company reported an 18 percent year-on-year revenue growth in the quarter, surpassing $400 billion in annual revenue for the first time since its establishment in 1998 by Larry Page and Sergey Brin.
Alphabet revealed its plan to almost double its investments in 2026 to keep up with the technology competition in Silicon Valley. The company anticipates capital expenditures between $175 billion and $185 billion this year to meet the rising demand for AI products, despite facing supply constraints, as stated by CEO Sundar Pichai during an earnings call.
Google’s Gemini AI platform experienced rapid growth, reaching 750 million monthly users by the end of the year, a 100 million increase from the previous quarter. Analysts predict that Google may surpass OpenAI to become the leading AI provider this year.
Alphabet’s revenue for the final quarter of 2025 reached $113.8 billion, driven by its core search business and cloud computing services, with a notable 48 percent increase in cloud revenue to $17.7 billion. Pichai attributed the company’s revenue growth to investments in AI and infrastructure.
The primary revenue sources for Alphabet remained its core search and advertising business, generating $82.3 billion, and YouTube advertising revenues grew to $11.4 billion. The company’s online advertising income provides a strong foundation for further investments in AI infrastructure.
Alphabet’s cloud division, competing with Amazon Web Services and Microsoft Azure, has become a significant growth driver. The company also benefited from a recent US court ruling that exempted it from selling its Chrome browser, easing monopoly concerns.
Despite the overall success, Alphabet’s “Other Bets” division, including Waymo, reported a $3.6 billion loss on revenues of $370 million. Waymo, the autonomous vehicle unit, secured $16 billion in funding, with Alphabet as the primary investor, reinforcing the future of large-scale autonomous mobility.
Waymo executives highlighted the investment as a catalyst for rapid progress while maintaining safety standards. The company expanded its services, providing over 400,000 rides weekly in major US metropolitan areas, tripling its annual ride volume to 15 million last year.
