Alphabet Inc.: Tech Giant Surpasses $400 Billion Revenue Milestone Amid AI Expansion
MOUNTAIN VIEW, 07 February 2026 — Alphabet Inc., the parent conglomerate of Google, has solidified its position as a dominant force in the global economy following a record-breaking fiscal year 2025. As of this week, the company is navigating a pivotal transition period, balancing massive capital investments in artificial intelligence with unprecedented revenue growth that has seen the firm surpass the $400 billion annual turnover mark for the first time in its history.
Record-Breaking Q4 2025 Financial Performance
On 4 February 2026, Alphabet released its fourth-quarter earnings for the period ending December 2025, significantly exceeding Wall Street expectations. The company reported a quarterly revenue of $113.8 billion, representing an 18% increase year-over-year. This surge was largely driven by a 48% explosion in Google Cloud revenue, which reached $17.7 billion.
The company’s profitability remains robust, with a reported Earnings Per Share (EPS) of $2.82, beating the consensus estimate of $2.57. For the full fiscal year 2025, Alphabet’s total revenue reached $403 billion, a 15% increase from the previous year, while adjusted EPS rose by 34%.
| Metric | Q4 2025 Result | Q4 2024 Comparison |
|---|---|---|
| Total Revenue | $113.8 Billion | $96.47 Billion |
| Earnings Per Share (EPS) | $2.82 | $2.15 |
| Google Cloud Revenue | $17.7 Billion | $11.96 Billion (approx.) |
| Operating Margin | 31.6% | 32.1% |
Strategic Restructuring and AI Infrastructure
Alphabet Inc. was originally created on 2 October 2015, through a corporate restructuring of Google. This move allowed the company to separate its core internet services from its more speculative “Other Bets.” Today, the company operates through three primary reporting segments: Google Services, Google Cloud, and Other Bets.
The 2026 AI Capex Surge
Following the Q4 earnings report, Alphabet leadership confirmed a massive shift in capital expenditure (Capex) for 2026. The company plans to invest between $175 billion and $185 billion this year, primarily focused on data centre construction and AI compute infrastructure. This planned spending is nearly double the investment levels seen in 2025, reflecting the intense arms race in generative AI technologies.
Waymo and “Other Bets”
While Google Services remains the primary profit engine, the “Other Bets” segment saw significant activity this week. Waymo, Alphabet’s autonomous driving subsidiary, reportedly secured a $16 billion funding round on 2 February 2026. This capital injection is expected to accelerate the commercial expansion of robotaxi services across North America and Europe.
Market Valuation and Stock Performance
As of 7 February 2026, Alphabet Class A (GOOGL) shares are trading at approximately $318.83. The company’s market capitalisation has fluctuated near the $4 trillion threshold, briefly touching $4.02 trillion earlier this week before a slight market-wide tech correction. Investors remain focused on the upcoming Q1 2026 earnings report, which is scheduled for release on 27 April 2026.
Frequently Asked Questions
When was Alphabet Inc. formed?
Alphabet Inc. was established on 2 October 2015, as part of a restructuring to make Google’s operations “cleaner and more accountable.”
What are the main subsidiaries of Alphabet?
Alphabet owns several significant subsidiaries, including Google LLC, XXVI Holdings Inc., and Google Ireland Holdings. Its business is divided into Google Services (Search, YouTube, Android), Google Cloud, and Other Bets (Waymo, Verily, etc.).
What was Alphabet’s total revenue for 2025?
Alphabet surpassed $400 billion in annual revenue for the first time in 2025, finishing the fiscal year at $403 billion.
How much does Alphabet plan to spend on AI in 2026?
The company has announced plans to increase capital expenditure to between $175 billion and $185 billion in 2026 to support AI infrastructure and data centre expansion.