Alphabet Inc.

Google Cloud revenue $17.7 billion up 48% significantly accelerating with GCP growing much higher than overall cloud. Operating income $5.3 billion more than doubling year over year with margin expanding from 17.5% to 30.1%. Cloud backlog $240 billion up 55% sequentially and more than doubled year over year. Number of 2025 deals over $1 billion surpassed previous three years combined. Double the new customer velocity compared to Q1. Nearly 75% of customers used AI products. 14 product lines each over $1 billion annual revenue. Revenue from generative AI models grew nearly 400% year over year. Over 120,000 enterprises use Gemini. Apple partnership as preferred cloud provider.

2026 CAPEX expected $175 billion to $185 billion with investments ramping over course of year. 2025 full year CAPEX $91.4 billion in line with expectations. Approximately 60% servers and 40% data centers and networking both in 2025 and expected 2026. Just over half of 2026 ML compute expected for cloud business. 2025 depreciation increased 38% from $15.3 billion to $21.1 billion. 2026 depreciation growth rate to accelerate in Q1 and meaningfully increase for full year. Gemini serving unit costs lowered 78% over 2025 through model optimizations efficiency and utilization improvements.

Gemini 3 launched in December as fastest adopted model in company history processing three times daily tokens versus 2.5 Pro. Gemini app surpassed 750 million monthly active users with extraordinary Q4 growth and sharp increase in engagement per user. First party models process over 10 billion tokens per minute via API up from 7 billion. Google Anti Gravity development platform has 1.5 million weekly users. Over 325 million paid subscriptions. Gemini Enterprise sold over 8 million paid seats to over 2,800 companies managing 5 billion customer interactions in Q4. 95% of top 20 and over 80% of top 100 SAAS companies use Gemini.

YouTube annual revenue surpassed $60 billion across ads and subscriptions. Q4 advertising revenue $11.4 billion up 9% driven by direct response with brand growth negatively impacted by lapping strong 2024 US election spending. Subscription platforms and devices revenue $13.6 billion up 17% with strong growth in YouTube Music and Premium and Google One AI plans. YouTube number one US streamer for nearly three years per Nielsen. Over 700 million hours of podcasts watched on living room devices in October up 75% year over year. NFL Sunday Ticket highest paid subscriber number ever.

Waymo surpassed 20 million fully autonomous trips providing over 400,000 rides weekly. Raised largest investment round to date at $16 billion with Alphabet funding significant portion. Sixth market Miami launched with expansion planned to multiple US cities and UK and Japan. Opening public service to airports and freeways. $2.1 billion stock-based compensation charge reflected in Q4 due to Waymo valuation increase. Universal Commerce Protocol introduced at NRF with founding retail partners for agentic commerce standard.