Alphabet Inc. 8-K
PositiveEarningsNew guidanceImpairment / charge
AI demand accelerates Google Cloud growth, with sharply higher 2026 capital spending planned to meet customer demand.
Filed 2026-02-04 16:01 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2025 results with FY2026 capital expenditure guidance. Q4 revenue rose 18% Y/Y (17% in constant currency), with growth accelerating in Google Services and Google Cloud; FY revenue exceeded $400B. Results included a $2.1B Waymo employee compensation charge and a $1.8B after-tax gain on equity securities that lifted diluted EPS by $0.15. Alphabet anticipates substantially higher capital spending in 2026 to meet customer demand and pursue AI opportunities.
Key Figures
| Metric | Q4 2025 | Q4 2024 | Y/Y |
|---|---|---|---|
| Revenue | $114B | $96.5B | 18% |
| Operating income | $35.9B | $31.0B | 16% |
| Net income | $34.5B | $26.5B | 30% |
| Diluted EPS | $2.82 | $2.15 | 31% |
| Operating cash flow | $52.4B | $39.1B | 34% |
| Free cash flow (non-GAAP) | $24.6B | $24.8B | (1.2)% |
| Metric | FY2025 | FY2024 | Y/Y |
|---|---|---|---|
| Revenue | $403B | $350B | 15% |
| Operating income | $129B | $112B | 15% |
| Net income | $132B | $100B | 32% |
| Diluted EPS | $10.81 | $8.04 | 34.5% |
| Operating cash flow | $165B | $125B | 31.5% |
| Free cash flow (non-GAAP) | $73.3B | $72.8B | 0.7% |
- Q4 Google Services revenue was $95.9B (+14% Y/Y), including Search & other at $63.1B (+17%); Google Cloud revenue was $17.7B (+48%). Cloud growth reflected demand for AI infrastructure and solutions.
- The Waymo charge was primarily reflected in research and development expenses and based on estimated stock valuation. The equity-securities gain increased Q4 net income by $1.8B after tax.
- FY stock repurchases were $45.7B vs $62.2B in FY2024; shares outstanding declined from 12.211B to 12.088B. Year-end cash, cash equivalents and marketable securities were $126.8B, and long-term debt was $46.5B. Alphabet declared a $0.21 quarterly dividend, payable 3/16/2026 to holders of record on 3/9/2026.
Guidance
- FY2026 capital expenditures: $175B-$185B.
Investor Takeaways
- FY2026 capital spending within the $175B-$185B range, alongside continued growth in Google Cloud and Google Services, will show how well Alphabet converts AI infrastructure investment into business growth.
The summary is written by an AI model reading the filing.
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