Highlights

  • Alphabet reported USD 113.8 billion in Q4 2025 revenue, up 18% year over year.
  • Google Cloud revenue increased 48% to USD 17.7 billion during the quarter.
  • Multiple brokers issued buy ratings with price targets ranging from USD 325 to USD 400.

Alphabet Inc. (NASDAQ:GOOG) reported fourth-quarter and full-year 2025 earnings that exceeded the USD 113 billion revenue mark, supported by growth across Google Services and Google Cloud. Despite the earnings beat, Alphabet shares moved lower in after-hours trading, while multiple brokerages reiterated or issued buy-rated outlooks with higher price targets.

Alphabet Shares Slip After Earnings

Alphabet Class C shares closed at USD 333.34, down 2.16% during regular trading. In after-hours activity, the stock declined further to USD 331.96, representing a 0.41% drop. The move followed the release of quarterly earnings.

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Revenue Crosses USD 113 Billion Mark

For the quarter ended December 31, 2025, Alphabet reported consolidated revenue of USD 113.8 billion, an increase of 18% year over year. Full-year revenue reached USD 402.8 billion, compared with USD 350.0 billion in 2024.

Google Services generated USD 95.9 billion in quarterly revenue, led by growth in Google Search & Other, subscriptions, platforms, devices, and YouTube advertising. YouTube revenue across advertising and subscriptions exceeded USD 60 billion for the full year.

Google Cloud Expansion Continues

Google Cloud revenue rose 48% year over year to USD 17.7 billion in the fourth quarter. Growth was driven by enterprise demand for AI infrastructure, AI solutions, and core Google Cloud Platform products.

Alphabet reported quarterly operating income of USD 35.9 billion, while operating margin stood at 31.6%. Net income increased 30%, with diluted earnings per share rising 31% to USD 2.82.

CEO Comments and 2026 Capital Spending Outlook

Alphabet’s Chief Executive Officer stated that the company continues to see its AI investments and infrastructure contributing to revenue growth across business segments. According to the CEO, Alphabet plans to increase capital expenditures in 2026 to meet customer demand and pursue future opportunities.

Capital expenditure investments for 2026 are expected to range between USD 175 billion and USD 185 billion, reflecting continued spending on AI infrastructure and data center capacity.

Broker Buy Ratings and Price Targets

Several brokerages issued or maintained positive ratings following the earnings release. Guggenheim Securities LLC assigned a buy rating with a target price of USD 375. Evercore ISI maintained an outperform rating with a USD 325 target.

Truist Securities issued a buy rating with a target of USD 350, while Stifel Nicolaus & Company set a buy rating with a USD 346 target. Jefferies assigned a buy rating with the highest target among peers at USD 400.

Alphabet’s fourth-quarter earnings showcased revenue expansion across advertising, subscriptions, and cloud services. While shares moved lower after the announcement, broker targets and ratings remained focused on longer-term expectations tied to revenue scale and cloud momentum.

FAQ Section

Q1: Why did Alphabet shares decline after earnings despite higher revenue?
The stock moved lower as investors assessed valuation levels and market positioning following the earnings release.

Q2: What was Alphabet’s total revenue for Q4 2025?
Alphabet reported consolidated revenue of USD 113.8 billion for the fourth quarter of 2025.

Q3: Which broker issued the highest price target for Alphabet?
Jefferies issued the highest target price at USD 400, maintaining a buy rating.

Q4: How much does Alphabet plan to invest in capital expenditures in 2026?
Alphabet expects 2026 capital expenditures to be between $175 billion and $185 billion