Alphabet Inc (NASDAQ:GOOG), Google's parent company, reported better-than-expected fourth quarter financial results, with both revenue and earnings per share exceeding Wall Street expectations. For the fourth quarter ended December 31, 2025, Alphabet reported consolidated revenue of $113.8 billion, up 18% year-over-year, compared with the consensus estimate of $111.3 billion.
Tech giant's annual revenues surpassed $400 billion for the first time
Alphabet said on Wednesday it was targeting capital expenditure of $175 billion to $185 billion this year, in yet another aggressive ramp-up in spending from the Google parent as it deepens its investments to push ahead in the AI race.
As the market digests the latest round of corporate earnings, all eyes have turned to Alphabet. Alphabet Inc. (GOOGL/GOOG) is reporting its fourth-quarter results Wednesday after the bell, with Wall Street setting a high bar for the search giant.
Alphabet ( NASDAQ:GOOG )( NASDAQ:GOOGL ) is hitting its stride in artificial intelligence.
Alphabet reports Q4 2025 earnings today after market close. After being one of only two Magnificent Seven companies that outperformed the S&P 500 last year, Wall Street is expecting EPS of $2.64, up nearly 23% year-over-year (YOY), on revenue near $113 billion, up around 15% YOY.
According to Visible Alpha consensus, Alphabet Inc.'s total revenues expected for Q4 2025 have increased to $111.4 billion from $108.8 billion last quarter. We are closely monitoring the trend of the Cloud business. The operating profit margin has been trending better. According to Visible Alpha consensus, Amazon.com Inc.'s total revenues of $211.6 billion expected for Q4 have remained steady since the October release, driven by resilience in Amazon's online retail business.
Alphabet faces high investor expectations following a year of significant stock growth, with the core focus being proof that massive capital investments in AI. Wall Street expects a strong quarter, projecting revenue of approximately $111.4 billion (+15.4% YoY) and earnings per share (EPS) of $2.64. Critical items for investors include updates on AI monetization (Gemini integration, Search evolution), the conversion velocity and margin expansion of Google Cloud.
The Justice Department and 35 states will appeal a September 2025 court ruling that allowed Google parent company Alphabet to keep its Chrome browser after losing an antitrust case. The plaintiffs said Tuesday (Feb. 3) in court papers that they will appeal the ruling, Reuters reported Tuesday.
Alphabet and Amazon's cloud services will be closely monitored and hopefully echo further AI-driven growth amid reemerging CapEx concerns among the Mag 7.
GOOGL's fourth-quarter 2025 results are expected to benefit from solid momentum in Search and Cloud businesses.
Google stock (GOOGL) has faced difficulties in the past. It decreased by over 30% in less than two months in 2022, resulting in a loss of billions in market value and wiping away significant gains in one correction.