Alphabet, the parent company of Google, has surpassed a significant financial milestone, reporting over $400 billion in annual revenue for the first time. This achievement was announced in its fourth-quarter earnings report for 2025, released on Wednesday, highlighting a 15% increase compared to the previous year. The boost is largely attributed to the continued expansion of its cloud services and YouTube platform.
The earnings report reveals that Google’s Cloud business reached a remarkable $70 billion run rate in 2025. Meanwhile, YouTube’s annual revenue exceeded $60 billion, driven by its advertising and subscription services. Alphabet CEO Sundar Pichai shared with investors that YouTube maintains its status as the “number one streamer,” referencing Nielsen’s data. The company also boasts over 325 million paid subscribers, primarily through Google One and YouTube Premium.
Moreover, Pichai highlighted a surge in Google Search activity, noting that usage has reached unprecedented levels in recent months. He mentioned that daily queries utilizing AI Mode have doubled since it was introduced. Looking ahead, Google plans to capitalize on the success of its Gemini app and AI Mode by incorporating an agentic checkout feature into both platforms.
