Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Alphabet (GOOGL) delivered a strong fiscal year 2025 with revenue growing 15.1% to $402.8B and net income surging 32.0% to $132.2B, driven by robust advertising and cloud performance, though long-term debt jumped 309% to $49.1B reflecting aggressive AI infrastructure investment.
Revenue
$402.84B
+15.09% YoY
EPS (Diluted)
$10.81
+34.45% YoY
Operating Income
$129.04B
+14.81% YoY
Source: SEC XBRL
Alphabet (GOOGL) reported FY2025 revenue of $402.84B, up 15.1% year over year. Operating margin was 32.0%, down 0.1 points from 32.1% a year earlier. Operating cash flow was $164.71B, up 31.5% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.85 | 2.98 | Miss -4.4% |
| Mar 2026 | 2.62 | 2.71 | Miss -3.1% |
| Dec 2025This filing | 2.82 | 2.71 | Beat +4.2% |
| Sep 2025 | 3.10 | 2.40 | Beat +29.4% |
Reported EPS of $2.82 versus the $2.71 analyst consensus — a +4.2% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue grew 15.1% year-over-year to $402.8B in FY2025, up from $350.0B in FY2024, reflecting continued strength in Google's core advertising business and expanding cloud services. This broad-based growth demonstrates the resilience of Alphabet's diversified revenue streams.
Source: 10-K Income Statement
Net income rose 32.0% to $132.2B, outpacing revenue growth and signaling improved operational leverage. Diluted EPS increased 34.5% to $10.81, partly benefiting from ongoing share buybacks that reduced the diluted share count.
Source: 10-K Income Statement
Investing cash outflows surged 164.2% to -$120.3B, a dramatic increase from -$45.5B in the prior year, reflecting massive capital expenditure commitments to AI infrastructure, data centers, and compute capacity. This investment posture signals Alphabet's strategic priority to lead in AI.
Source: 10-K Cash Flow Statement
Research and development expenses grew 23.8% to $61.1B, well above the revenue growth rate of 15.1%, underscoring Alphabet's commitment to innovation in AI, quantum computing, and next-generation products. This elevated R&D spend is a key driver of future competitive positioning.
Source: 10-K Income Statement
Long-term debt increased 309.0% to $49.1B from $12.0B in the prior year, indicating Alphabet has taken on significant new borrowings, likely to fund its unprecedented capital expenditure program while maintaining shareholder returns through dividends ($10.0B) and buybacks ($45.7B).
Source: 10-K Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Investing cash outflows surged to $120.3B in FY2025, a 164.2% increase year-over-year, reflecting unprecedented AI infrastructure spending. If AI monetization does not materialize at the expected pace or scale, this capital deployment could weigh on returns. The 309% jump in long-term debt to $49.1B adds financial leverage risk to this execution challenge.
Source: 10-K Cash Flow Statement & Balance Sheet
As one of the world's largest technology companies, Alphabet faces ongoing antitrust scrutiny across multiple jurisdictions, including the U.S. Department of Justice's search monopoly case and EU regulatory actions. Adverse rulings could force structural changes to Google's business model, particularly its search distribution agreements, which are central to advertising revenue.
Source: 10-K Risk Factors (inferred from business profile)
The rapid rise of AI-powered search alternatives from Microsoft (Bing/Copilot), OpenAI, and others poses a structural threat to Google's dominant search market share, which underpins the majority of Alphabet's advertising revenue. While Alphabet is investing heavily in AI, any meaningful shift in user search behavior could pressure revenue growth and operating margins.
Source: 10-K Business Overview (inferred)
Despite strong absolute profit growth, operating margin was essentially flat at 32.0% versus 32.1% in the prior year, as cost of revenue (+11.1%) and R&D (+23.8%) growth consumed much of the revenue upside. Sustained heavy investment in AI infrastructure and talent could compress margins if revenue growth moderates.
Source: 10-K Income Statement
Long-term debt rose sharply from $12.0B to $49.1B, a 309% increase, representing a significant shift in Alphabet's historically conservative balance sheet. While the debt-to-equity ratio remains manageable at 0.43, the rapid pace of leverage increase warrants monitoring, particularly if interest rates remain elevated or if cash generation disappoints.
Source: 10-K Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 402.84 $B | 350.02 $B | +15.09% |
Cost of Revenue $B | 162.54 $B | 146.31 $B | +11.09% |
Operating Income $B | 129.04 $B | 112.39 $B | +14.81% |
Net Income $B | 132.17 $B | 100.12 $B | +32.01% |
EPS (Basic) $ | 10.91 $ | 8.13 $ | +34.19% |
EPS (Diluted) $ | 10.81 $ | 8.04 $ | +34.45% |
R&D Expense $B | 61.09 $B | 49.33 $B | +23.84% |
Answers draw on this SEC filing and the data on this page
Alphabet’s Q2 FY2026 revenue rose 24% to $119.8 billion, but a $99 billion unrealized gain on equity investments pushed net income up nearly 300% to $112.2 billion, while heavy cloud investments led to a $5.8 billion free cash flow deficit.
Google parent Alphabet delivered a standout Q1 2026, with revenue surging 21.8% YoY to $109.9B and net income nearly doubling (+81.2%) to $62.6B, driven by strong advertising and cloud momentum alongside a dramatic expansion of the balance sheet.
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