Alphabet's Historic Revenue Surge: A Testament to AI and Cloud Expansion

In a landmark financial achievement, Alphabet, the parent company of Google, surpassed USD 400 billion in annual revenues for the first time in 2025. This remarkable feat was highlighted by Google CEO Sundar Pichai, who shared his enthusiasm over a 'tremendous' quarter fueled by significant expansion in Search and Cloud services.

The earnings report revealed a 17% year-on-year increase in the search engine's performance, with AI driving further innovation. Google Cloud, another pillar of Alphabet's growth, noted a 48% surge in revenue, now boasting an annual run rate exceeding USD 70 billion. The backlog soared by 55% to USD 240 billion, spurred by the growing demand for AI-driven solutions.

Generative AI product revenues skyrocketed by 400% year-over-year in Q4, reflecting the tremendous impact of the Gemini AI models. YouTube also reported annual revenues surpassing USD 60 billion. As Alphabet looks towards 2026, the company is preparing for substantial investments between USD 175 billion and USD 185 billion, aiming to enhance data center capabilities and AI computing power.