Google reported revenue up 18% to $US113.8 billion in the December quarter, driven by search and subscriptions.
Advertising revenue was 13.5% higher at $US82.284 billion in the quarter, up from $US72.461 billion in the same three months last year.
YouTube revenue across ads and subscriptions exceeded $US60 billion for the full year 2025.
The advertising-free Gemini continued its growth, now at 750 million users each month.
“It was a tremendous quarter for Alphabet and annual revenues exceeded $400 billion for the first time,” said CEO Sundar Pichai.
“The launch of Gemini 3 was a major milestone and we have great momentum. Our first party models, like Gemini, now process over 10 billion tokens per minute via direct API use by our customers, and the Gemini App has grown to over 750 million monthly active users.
“Search saw more usage than ever before, with AI continuing to drive an expansionary moment.
“We continue to drive strong growth across the business. YouTube’s annual revenues surpassed $60 billion across ads and subscriptions; we now have over 325 million paid subscriptions across consumer services, led by strong adoption for Google One and YouTube Premium.
"And Google Cloud ended 2025 at an annual run rate of over $70 billion, representing a wide breadth of customers, driven by demand for AI products.
"We’re seeing our AI investments and infrastructure drive revenue and growth across the board. To meet customer demand and capitalise on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185 billion.”
Emarketer analyst Nate Elliott said it's worth noting that Gemini's user number grew only about one-third as fast in the December quarter as in the September quarter.
“That might explain why Google continues to keep its flagship AI tool advertising-free, hoping the lack of ads makes it more attractive to users than ChatGPT,” Elliott said.
“It also explains why the company is now more aggressively pushing search users from AI Overviews into AI Mode: it's looking for additional avenues to increase usage of its full-fledged AI chatbots."
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