# Alphabet Inc. (GOOGL) Informational only - not investment advice. CIK: 0001652044 SIC: 7370 Services-Computer Programming, Data Processing, Etc. SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7370 Services-Computer Programming, Data Processing, Etc.](/industry/7370/) Latest 10-K filed: 2026-02-05 SEC page: https://www.sec.gov/edgar/browse/?CIK=1652044 Filing source: https://www.sec.gov/Archives/edgar/data/1652044/000165204426000018/goog-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-05 · accession 0001652044-26-000018 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001652044.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 402,836,000,000 USD | 2025 | verified | | Net income | 132,170,000,000 USD | 2025 | verified | | Assets | 595,281,000,000 USD | 2025 | verified | | Free cash flow | 73,266,000,000 USD | 2025 | computed | | Net margin | 32.81% | 2025 | computed | | Operating margin | 32.03% | 2025 | computed | | Revenue YoY | +15.09% | 2025 | computed | | ROE | 31.83% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. Peer groups: [Big-tech megacap platforms](/compare/big-tech/) · SIC 7370 Services-Computer Programming, Data Processing, Etc. No market price, no rating, no forecast on this site. Not investment advice. ## Peer comparisons including GOOGL - Big-tech megacap platforms: [peer review](/compare/big-tech/) · [market-risk page](/compare/big-tech/risk/) ### Peer percentile fingerprint | Ratio | GOOGL | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 32.8% | 2.4% | 93 | 31 | | Operating margin | 32.0% | 4.2% | 90 | 31 | | Revenue growth | 15.1% | 5.5% | 65 | 32 | | FCF margin | 18.2% | 15.0% | 53 | 31 | | ROE | 31.8% | 4.5% | 88 | 27 | | ROA | 22.2% | 1.6% | 94 | 32 | | Liabilities / equity | 0.43 | 1.05 | 27 | 27 | | Current ratio | 2.01 | 1.98 | 52 | 32 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7370 Services-Computer Programming, Data Processing, Etc., not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 402836000000 | USD | 2025 | 2026-02-05 | | Net income | 132170000000 | USD | 2025 | 2026-02-05 | | Assets | 595281000000 | USD | 2025 | 2026-02-05 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001652044.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | 74,989,000,000 | 90,272,000,000 | 110,855,000,000 | 136,819,000,000 | 161,857,000,000 | 182,527,000,000 | 257,637,000,000 | | 307,394,000,000 | 350,018,000,000 | 402,836,000,000 | | Net income | | | | 19,478,000,000 | 12,662,000,000 | 30,736,000,000 | 34,343,000,000 | 40,269,000,000 | 76,033,000,000 | 59,972,000,000 | 73,795,000,000 | 100,118,000,000 | 132,170,000,000 | | Operating income | | | | 23,716,000,000 | 26,178,000,000 | 27,524,000,000 | 34,231,000,000 | 41,224,000,000 | 78,714,000,000 | 74,842,000,000 | 84,293,000,000 | 112,390,000,000 | 129,039,000,000 | | Diluted EPS | | | | 27.85 | 18.00 | 43.70 | 49.16 | 2.93 | 5.61 | 4.56 | 5.80 | 8.04 | 10.81 | | Operating cash flow | | | | 36,036,000,000 | 37,091,000,000 | 47,971,000,000 | 54,520,000,000 | 65,124,000,000 | 91,652,000,000 | 91,495,000,000 | 101,746,000,000 | 125,299,000,000 | 164,713,000,000 | | Capital expenditures | | | | 10,212,000,000 | 13,184,000,000 | 25,139,000,000 | 23,548,000,000 | 22,281,000,000 | 24,640,000,000 | 31,485,000,000 | 32,251,000,000 | 52,535,000,000 | 91,447,000,000 | | Dividends paid | 0.00 | 0.00 | 47,000,000 | 0.00 | 0.00 | | | | | 0.00 | 0.00 | 7,363,000,000 | 10,049,000,000 | | Share buybacks | | | | 3,693,000,000 | 4,846,000,000 | 9,075,000,000 | 18,396,000,000 | 31,149,000,000 | 50,274,000,000 | 59,296,000,000 | 61,504,000,000 | 62,222,000,000 | 45,709,000,000 | | Assets | | | | 167,497,000,000 | 197,295,000,000 | 232,792,000,000 | 275,909,000,000 | 319,616,000,000 | 359,268,000,000 | 365,264,000,000 | 402,392,000,000 | 450,256,000,000 | 595,281,000,000 | | Liabilities | | | | 28,461,000,000 | 44,793,000,000 | 55,164,000,000 | 74,467,000,000 | 97,072,000,000 | 107,633,000,000 | 109,120,000,000 | 119,013,000,000 | 125,172,000,000 | 180,016,000,000 | | Stockholders' equity | | | | 139,036,000,000 | 152,502,000,000 | 177,628,000,000 | 201,442,000,000 | 222,544,000,000 | 251,635,000,000 | 256,144,000,000 | 283,379,000,000 | 325,084,000,000 | 415,265,000,000 | | Cash and cash equivalents | | | | 12,918,000,000 | 10,715,000,000 | 16,701,000,000 | 18,498,000,000 | 26,465,000,000 | 20,945,000,000 | 21,879,000,000 | 24,048,000,000 | 23,466,000,000 | 30,708,000,000 | | Free cash flow | | | | 25,824,000,000 | 23,907,000,000 | 22,832,000,000 | 30,972,000,000 | 42,843,000,000 | 67,012,000,000 | 60,010,000,000 | 69,495,000,000 | 72,764,000,000 | 73,266,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | 21.58% | 11.42% | 22.46% | 21.22% | 22.06% | 29.51% | | 24.01% | 28.60% | 32.81% | | Operating margin | | | | 26.27% | 23.61% | 20.12% | 21.15% | 22.59% | 30.55% | | 27.42% | 32.11% | 32.03% | | Return on equity | | | | 14.01% | 8.30% | 17.30% | 17.05% | 18.09% | 30.22% | 23.41% | 26.04% | 30.80% | 31.83% | | Return on assets | | | | 11.63% | 6.42% | 13.20% | 12.45% | 12.60% | 21.16% | 16.42% | 18.34% | 22.24% | 22.20% | | Liabilities / equity | | | | 0.20 | 0.29 | 0.31 | 0.37 | 0.44 | 0.43 | 0.43 | 0.42 | 0.39 | 0.43 | | Current ratio | | | | 6.29 | 5.14 | 3.92 | 3.37 | 3.07 | 2.93 | 2.38 | 2.10 | 1.84 | 2.01 | ## As-reported value updates 1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/GOOGL/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001652044.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2017-Q4 | 2017-12-31 | 32,323,000,000 | | | derived Q4 = FY annual - nine-month YTD | | 2018-Q1 | 2018-03-31 | 31,146,000,000 | | | reported discrete quarter | | 2018-Q2 | 2018-06-30 | 32,657,000,000 | | | reported discrete quarter | | 2018-Q3 | 2018-09-30 | 33,740,000,000 | | | reported discrete quarter | | 2019-Q1 | 2019-03-31 | 36,339,000,000 | | | reported discrete quarter | | 2021-Q1 | 2021-03-31 | 55,314,000,000 | | | reported discrete quarter | | 2021-Q2 | 2021-06-30 | 61,880,000,000 | | | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.06 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.17 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 1.44 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | | 19,689,000,000 | 1.55 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | | 20,687,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | | 23,662,000,000 | 1.89 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | | 23,619,000,000 | 1.89 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | | 26,301,000,000 | 2.12 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | | 26,536,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | | 34,540,000,000 | 2.81 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 96,428,000,000 | 28,196,000,000 | 2.31 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 102,346,000,000 | 34,979,000,000 | 2.87 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 113,829,000,000 | 34,455,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 109,896,000,000 | 62,578,000,000 | 5.11 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 119,796,000,000 | 112,193,000,000 | 9.11 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from GOOGL's latest 10-K: [/company/GOOGL/business/](/company/GOOGL/business/). ## Risk Factors Verbatim Item 1A Risk Factors from GOOGL's latest 10-K: [/company/GOOGL/risk-factors/](/company/GOOGL/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1652044/000165204426000071/goog-20260630.htm Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub. Confidence: high Filing date: 2026-07-23 Report date: 2026-06-30 Executive Overview The following table summarizes consolidated financial results (in millions, except for per share information and percentages): [[GREPCENT_TABLE]] [["","","Three Months Ended"],["","June 30,"],["","","2025","","2026","","$ Change","","% Change"],["Consolidated revenues","","$","96,428","","","$","119,796","","","$","23,368","","","24","%"],["Cost of revenues","","$","39,039","","","$","45,943","","","$","6,904","","","18","%"],["Operating expenses","","$","26,118","","","$","33,083","","","$","6,965","","","27","%"],["Operating income","","$","31,271","","","$","40,770","","","$","9,499","","","30","%"],["Operating margin","","32","%","","34","%","","","","2","%"],["Other income (expense), net","","$","2,662","","","$","97,983","","","$","95,321","","","3,581","%"],["Net income available to common stockholders","","$","28,196","","","$","112,107","","","83,911","","","298","%"],["Diluted net income per common share(1)","","$","2.31","","","$","9.11","","","$","6.80","","","294","%"]] [[/GREPCENT_TABLE]] (1)    For additional information on the calculation of diluted net income per common share, see Note 12 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q. 45 •Revenues were $119.8 billion, an increase of 24% year over year, primarily driven by an increase in Google Services revenues of $12.0 billion, or 15%, and an increase in Google Cloud revenues of $11.1 billion, or 82%. •Cost of revenues was $45.9 billion, an increase of 18% year over year, primarily driven by increases in depreciation expense, TAC, inventory and other costs, content acquisition costs, and other technical infrastructure operations costs. •Operating expenses were $33.1 billion, an increase of 27% year over year, primarily driven by increases in employee compensation expenses, advertising and promotional activities, and depreciation expense. Other Information: •In June 2026, we issued a combination of Class A stock and Class C stock and mandatory convertible preferred stock for aggregate net proceeds of $49.6 billion, to be used for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. Additionally, we entered into an equity distribution agreement with certain sales agents to sell up to $40.0 billion of our Class A stock and Class C stock from time to time through an ATM Program. The proceeds of the ATM Program are primarily intended to be used to meet tax obligations associated with employee equity grants. As of June 30, 2026, we have not sold any shares under the ATM Program. For additional information regarding the equity capital raise and related capped call transactions, see Note 11 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q. •On July 2, 2026, the EC upheld its 2018 decision that certain provisions in Google's Android-related distribution agreements infringed European antitrust laws. The court imposed fine and interest of $5.2 billion, which was previously accrued, was paid in July 2026. •In the second quarter of 2026, we issued senior unsecured notes for net proceeds of $20.3 billion, to be used for general corporate purposes. •OI&E of $98.0 billion for the three months ended June 30, 2026 included net gains on equity securities of $99.0 billion, primarily related to unrealized gains in our equity securities portfolio from SpaceX and a private company. •In the second quarter of 2026, we accrued $2.1 billion in legal charges related to a Stockholm Patent and Market Court decision regarding a private action brought against Google by PriceRunner (a subsidiary of Klarna). The principal damages of $1.5 billion were accrued in general and administrative expenses in our Google Services segment, and accrued interest and costs of $581 million was recognized in other income (expense), net. •Operating cash flow was $39.1 billion for the three months ended June 30, 2026. •Capital expenditures, which primarily reflected investments in technical infrastructure, were $44.9 billion for the three months ended June 30, 2026. •As of June 30, 2026, we had 198,933 employees. We are monitoring ongoing developments surrounding geopolitical tension, international trade, and the macroeconomic environment. As a result, we may experience direct and indirect effects on our business, operations, and financial results. Our past results may not be indicative of our future performance, and our financial results may differ materially from historical trends. Financial Results 46 Revenues The following table presents revenues by type (in millions): [[GREPCENT_TABLE]] [["","Three Months Ended","","Six Months Ended"],["","June 30,","","June 30,"],["","2025","","2026","","2025","","2026"],["Google Search & other","$","54,190","","","$","63,271","","","$","104,892","","","$","123,670"],["YouTube ads","9,796","","","11,055","","","18,723","","","20,938"],["Google Network","7,354","","","7,303","","","14,610","","","14,274"],["Google advertising","71,340","","","81,629","","","138,225","","","158,882"],["Google subscriptions, platforms, and devices","11,203","","","12,911","","","21,582","","","25,295"],["Google Services total","82,543","","","94,540","","","159,807","","","184,177"],["Google Cloud","13,624","","","24,768","","","25,884","","","44,796"],["Other Bets","373","","","382","","","823","","","793"],["Hedging gains (losses)","(112)","","","106","","","148","","","(74)"],["Total revenues","$","96,428","","","$","119,796","","","$","186,662","","","$","229,692"]] [[/GREPCENT_TABLE]] Google Services Google Advertising Google Search & other Google Search & other revenues increased $9.1 billion and $18.8 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery. YouTube ads YouTube ads revenues increased $1.3 billion and $2.2 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The growth was driven by our direct response advertising products followed by our brand advertising products, both of which benefited from increased spending by our advertisers. Google Network Google Network revenues decreased $51 million and $336 million from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, primarily due to a decrease in AdSense revenues, partially offset by an increase in AdMob revenues. Monetization Metrics The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026: [[GREPCENT_TABLE]] [["","Three Months Ended","","Six Months Ended"],["","June 30, 2026","","June 30, 2026"],["Google Search & other"],["Paid clicks change","13","%","","13","%"],["Cost-per-click change","3","%","","4","%"],["Google Network"],["Impressions change","(12)","%","","(10)","%"],["Cost-per-impression change","13","%","","10","%"]] [[/GREPCENT_TABLE]] Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from changes in user adoption and usage, primarily on mobile devices. 47 Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and changes in foreign currency exchange rates. Google Subscriptions, Platforms, and Devices Google subscriptions, platforms, and devices revenues increased $1.7 billion and $3.7 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The growth was primarily driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid subscriptions across both YouTube services and Google One. Google Cloud Google Cloud revenues increased $11.1 billion and $18.9 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 primarily driven by growth in Google Cloud Platform largely from infrastructure and platform services. In addition, in the second quarter of 2026, we began recognizing revenue from the sale of TPU systems. Revenues by Geography The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of our customers: [[GREPCENT_TABLE]] [["","Three Months Ended","","Six Months Ended"],["","June 30,","","June 30,"],["","2025","","2026","","2025","","2026"],["United States","48","%","","51","%","","48","%","","50","%"],["EMEA","29","%","","27","%","","29","%","","28","%"],["APAC","17","%","","16","%","","17","%","","16","%"],["Other Americas","6","%","","6","%","","6","%","","6","%"],["Hedging gains (losses)","0","%","","0","%","","0","%","","0","%"]] [[/GREPCENT_TABLE]] For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q. Costs and Expenses Cost of Revenues The following table presents cost of revenues, including TAC (in millions, except percentages): [[GREPCENT_TABLE]] [["","Three Months Ended","","Six Months Ended"],["","June 30,","","June 30,"],["","2025","","2026","","2025","","2026"],["TAC","$","14,705","","","$","16,179","","","$","28,453","","","$","31,407"],["Other cost of revenues","24,334","","","29,764","","","46,947","","","55,807"],["Total cost of revenues","$","39,039","","","$","45,943","","","$","75,400","","","$","87,214"],["Total cost of revenues as a percentage of revenues","41","%","","38","%","","40","%","","38","%"]] [[/GREPCENT_TABLE]] Cost of revenues increased $6.9 billion from the three months ended June 30, 2025 to the three months ended June 30, 2026 due to an increase in other cost of revenues and TAC of $5.4 billion and $1.5 billion, respectively. Cost of revenues increased $11.8 billion from the six months ended June 30, 2025 to the six months ended June 30, 2026 due to an increase in other cost of revenues and TAC of $8.9 billion and $3.0 billion, respectively. The increase in TAC from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 20.6% to 19.8% from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC rate on Google Search & other revenues was substantially consistent from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026. The TAC rates on Google Network revenues reflected a slight increase from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026 due to a combination of factors, none of which were individually significant. 48 The increase in other cost of revenues from the three months ended June 30, 2025 to the three months ended June 30, 2026 was primarily due to increases in depreciation expense, inventory and other costs, content acquisition costs, largely for YouTube, and other technical infrastructure operations costs. The increase in other cost of rev [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1652044/000165204426000018/goog-20251231.htm Complete FY 2025 MD&A: /company/GOOGL/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-05 Report date: 2025-12-31 ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Please read the following discussion and analysis of our financial condition and results of operations together with “Note about Forward-Looking Statements,” Part I, Item 1 "Business," Part I, Item 1A "Risk Factors," and our consolidated financial statements and related notes included under Item 8 of this Annual Report on Form 10-K. The following section generally discusses 2025 results compared to 2024 results. Discussion of 2024 results compared to 2023 results to the extent not included in this report can be found in Item 7 of our 2024 Annual Report on Form 10-K. Understanding Alphabet’s Financial Results Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses, we have centralized certain AI-related research and development focused on advanced research in AI and developing the frontier models that serve our businesses, which is reported in Alphabet-level activities. For further details on our segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. Trends in Our Business and Financial Effect The following long-term trends have contributed to the results of our consolidated operations, and we anticipate that they will continue to affect our future results: •As we continue to grow our business and meet the evolving behaviors and needs of our users and customers, our revenue growth and mix along with our cost and margin profiles are being influenced by a number of factors, including: Expanded AI Offerings in our Products and Services: The continuing evolution of the online world has contributed to the growth of our business. We expect that this evolution, including user engagement with AI products and services, will continue to benefit our business and our revenues. As we continue to incorporate AI into our products and services, such as with AI Overviews and AI Mode in Search, and with enterprise AI solutions on our Google Cloud Platform, we may monetize differently than our historical consumer and enterprise offerings which could affect revenue growth rates and margin trends. When developing new products and services we generally focus first on user experience and then on monetization. At the same time, we face increasing competition, including from other developers and providers of AI products and services, which may affect our revenues. Increasing Revenues Beyond Advertising: Revenues from cloud, consumer subscriptions, platforms, and devices, which may have differing characteristics than our advertising revenues, have grown over time. Certain of these revenues have been growing at a rate higher than our advertising revenues, becoming a larger percentage of our consolidated revenues, and we expect this trend to continue. The margins on these revenues vary significantly and are generally lower than the margins on our advertising revenues. Increased Investment in Technical Infrastructure: We continue to invest in capital expenditures as we scale our technical infrastructure, in particular for AI, to meet the demand of our users and enterprise customers and to support research internally. We invested heavily in capital expenditures in 2025 and in 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure, including servers and network equipment, and data centers. The costs associated with operating our technical infrastructure - depreciation, energy, equipment, and network capacity - are expected to significantly increase as developing and serving AI offerings require more compute power than our historical consumer and enterprise offerings. While our technical infrastructure costs increase, we expect to continue to drive efficiencies in our data centers, for example, through the design of our AI models and our TPU and GPU-based technical infrastructure. Continued Investment in Intellectual Property through R&D and Acquisitions: We continue to make significant research and development investments in areas of strategic focus as we seek to develop new, innovative offerings, and improve our existing offerings across our businesses. Acquisitions and strategic investments remain important elements in our use of capital and contribute to the breadth and depth of our offerings, expand our expertise in engineering and other functional areas, and build strong partnerships around strategic initiatives. Traffic Acquisition Costs Growth and Rate Changes: We expect traffic acquisition costs ("TAC") paid to our distribution partners and Google Network partners to increase as our advertising revenues grow. Our overall TAC as a percentage of our advertising revenues ("TAC rate") has been decreasing primarily due to a revenue mix 28. [[GREPCENT_TABLE]] [["Table of Contents","Alphabet Inc."]] [[/GREPCENT_TABLE]] shift from Google Network properties to Google Search & other properties. Our TAC rate will continue to be affected by changes in device mix; geographic mix; partner agreement terms; partner mix; the percentage of queries channeled through paid access points; product mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms. •We have raised capital through external financing in the form of debt and we may continue to seek debt or other forms of financing in the future to support our capital and operating needs. In 2025, we raised capital through the issuance of debt and we expect to continue to assess the use of debt and other forms of financing in the future. We expect to continue to enter into finance leases, primarily for data centers. Additionally, in 2025, we provided credit support, such as through backstops and guarantees, to certain infrastructure related counterparties and may continue to provide additional credit support in the future. •We face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and other forms of potential legal liability, which could affect our business practices and financial results. Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused us to change our business practices. As the regulatory environment continues to evolve, we may continue to incur fines and we expect increased costs associated with compliance, modifications to our products and services, and limitations on our ability to pursue certain business practices. For additional information, see Part I, Item 1A Risk Factors and Legal Matters in Note 10 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. Revenues and Monetization Metrics We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide enterprise customers of all sizes with infrastructure, platform services, and applications; and sales of other products and services, such as fees received for subscription-based products, apps and in-app purchases, and devices. For additional information on how we recognize revenue, see Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. In addition to the long-term trends and their financial effect on our business discussed above, fluctuations in our revenues have been and may continue to be affected by a combination of factors, including: •changes in foreign currency exchange rates; •changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives; •general economic conditions and various external dynamics, including geopolitical events, regulations, and other measures and their effect on advertiser, consumer, and enterprise spending; •new product, service, and market launches; and •seasonality. Additionally, fluctuations in our revenues generated from advertising ("Google advertising"), other sources ("Google subscriptions, platforms, and devices"), Google Cloud, and Other Bets have been, and may continue to be, affected by other factors unique to each set of revenues, as described below. Google Services Google Services revenues consist of Google advertising as well as Google subscriptions, platforms, and devices revenues. Google Advertising Google advertising revenues are comprised of the following: •Google Search & other, which includes revenues generated on Google search properties (including revenues from traffic generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.), and other Google owned and operated properties like Gmail, Google Maps, and Google Play; •YouTube ads, which includes revenues generated on YouTube properties; and •Google Network, which includes revenues generated on Google Network properties participating in AdMob, AdSense, and Google Ad Manager. 29. [[GREPCENT_TABLE]] [["Table of Contents","Alphabet Inc."]] [[/GREPCENT_TABLE]] We use certain metrics to track how well traffic across various properties is monetized as it relates to our advertising revenues: paid clicks and cost-per-click pertain to traffic on Google Search & other properties, while impressions and cost-per-impression pertain to traffic on our Google Network properties. Paid clicks represent engagement by users and include clicks on advertisements by end-users on Google search properties and other Google owned and operated properties including Gmail, Google Maps, and Google Play. Cost-per-click is defined as click-driven revenues divided by our total number of paid clicks and represents the average amount we charge advertisers for each engagement by users. Impressions include impressions displayed to users on Google Network properties participating primarily in AdMob, AdSense, and Google Ad Manager. Cost-per-impression is defined as impression-based and click-based revenues divided by our total number of impressions, and represents the average amount we charge advertisers for each impression displayed to users. As our business evolves, we periodically review, refine, and update our methodologies for monitoring, gathering, and counting the number of paid clicks and the number of impressions, and for identifying the revenues generated by the corresponding click and impression activity. Fluctuations in our advertising revenues, as well as the change in paid clicks and cost-per-click on Google Search & other properties and the change in impressions and cost-per-impression on Google Network properties and the correlation between these items have been, and may continue to be, affected by factors in addition to the general factors described above, such as: •advertiser competition for keywords; •changes in advertising quality, formats, delivery, or policy; •changes in device mix; •seasonal fluctuations in internet usage, advertising expenditures, and underlying business trends, such as traditional retail seasonality; and •traffic growth in emerging markets compared to more mature markets and across various verticals and channels. Google Subscriptions, Platforms, and Devices Google subscriptions, platforms, and devices revenues are comprised of the following: •consumer subscriptions, which primarily include revenues from YouTube services, such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One, which offers access to our most capable Gemini models; •platforms, which primarily include revenues from Google Play sales of apps and in-app purchases; •devices, which primarily include sal [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/GOOGL/mda/fy2025/ All MD&A years: /company/GOOGL/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/GOOGL/mda/fy2024/): filed 2025-02-05; accession 0001652044-25-000014 (https://www.sec.gov/Archives/edgar/data/1652044/000165204425000014/goog-20241231.htm) - [FY 2023 MD&A](/company/GOOGL/mda/fy2023/): filed 2024-01-31; accession 0001652044-24-000022 (https://www.sec.gov/Archives/edgar/data/1652044/000165204424000022/goog-20231231.htm) - [FY 2022 MD&A](/company/GOOGL/mda/fy2022/): filed 2023-02-03; accession 0001652044-23-000016 (https://www.sec.gov/Archives/edgar/data/1652044/000165204423000016/goog-20221231.htm) - [FY 2021 MD&A](/company/GOOGL/mda/fy2021/): filed 2022-02-02; accession 0001652044-22-000019 (https://www.sec.gov/Archives/edgar/data/1652044/000165204422000019/goog-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7370 Services-Computer Programming, Data Processing, Etc.) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/GOOGL.md · JSON record: /company/GOOGL.json · verified financials: /company/GOOGL/financials.json / /company/GOOGL/financials.csv · machine TOC for the whole site: /llms.txt