Google's annual turnover surpassed $400 billion for the first time—investments in artificial intelligence will become even more extensive

Alphabet (Google) announced record annual revenue and plans for large-scale investments

*In its first full-year report for 2025, Alphabet showed that its revenue exceeded $400 billion, with growth rates of +15% compared to the previous year. The main driver is successful results from YouTube and the cloud sector.*

Key figures
Metric | Value | Comment | Annual revenue
$400 billion+ | Highest figure in company history |
Cloud business (2025) | $70 billion | Revenue grew 48% in Q4, reaching $17.7 billion. Contract volume doubled to $240 billion. |
YouTube | >$60 billion | Advertising and subscription revenue. According to Nielsen, YouTube remains the leader in the streaming market. |
Paid subscribers | 325 million+ | Includes Google One, YouTube Premium, and other services.

Q4 2025 results
- Revenue excluding partner payouts: $97.23 billion (above Bloomberg forecast of $95.2 billion).
- Google Cloud: +48% YoY → $17.7 billion.
- Contract volume: $240 billion – confirms strong demand for corporate AI solutions.

Artificial intelligence
Metric | Value
Gemini AI | Users grew by 100 million, reaching 750 million (end of Q3).
Gemini Enterprise | In four months attracted more than 8 million paying customers.
Apple Siri | Plans to integrate a modified version of Gemini into the updated Siri.

Pichai noted that after launching the “AI” mode, Google’s search service has been used more actively; the number of queries doubled since its introduction.

Investment plans for 2026
- Capital expenditures: $175–185 billion (twice last year, far above analysts’ forecasts of $119.5 billion).
- Key areas: data centers, network infrastructure, and server equipment to scale AI services.
- Goal – remain competitive alongside Amazon, Microsoft, and OpenAI.

Other segments
Segment | Q4 revenue | Operating loss
Waymo & others | $370 million–$3.6 billion

Alphabet invested $16 billion in a recent Waymo round, valuing the company at $126 billion.

Market reaction
- Alphabet shares, up 61% over the year, initially fell more than 7% in pre‑market trading.
- After partial recovery they declined moderately again.
- Investors are concerned about the scale of future investments, but management assures that they will drive long‑term growth in the AI era.

Conclusion: Alphabet continues to demonstrate strong financial results thanks to YouTube and cloud services while investing significant funds into AI infrastructure. This strengthens the company’s position amid growing competition in the digital space.