Direct Answer
Alphabet reported $402.8 billion in revenue and $129.0 billion in operating income for the full year 2025. Google Services generated $342.7 billion in revenue at a $139.4 billion operating profit, while Google Cloud generated $58.7 billion at $13.9 billion. Capital expenditures reached $91.4 billion in 2025 and $80.6 billion in the first half of 2026. All figures sourced from SEC filings. Data checkpoint: September 5, 2026; financial data through Q2 2026.
2025 annual segment results
| Segment | 2025 Revenue | 2025 Operating Income/(Loss) |
|---|---|---|
| Google Services | $342.7B | $139.4B |
| Google Cloud | $58.7B | $13.9B |
| Other Bets | $1.5B | $(7.5)B |
| Alphabet-level activities | n/a | $(16.8)B |
| Total Alphabet | $402.8B | $129.0B |
Alphabet-level activities primarily include shared AI research and development costs not allocated to the reportable segments.
Q2 2026 segment results
| Segment | Q2 2026 Revenue | Q2 2026 Operating Income/(Loss) |
|---|---|---|
| Google Services | $94.5B | $39.5B |
| Google Cloud | $24.8B | $8.8B |
| Other Bets | $0.4B | $(1.8)B |
| Alphabet-level activities | n/a | $(5.8)B |
| Total Alphabet | $119.8B | $40.8B |
These are reported quarterly figures, not run-rate forecasts. Seasonality, mix and unusual items affect quarter-to-quarter comparisons.
Source: Alphabet Q2 2026 Form 10-Q
Google Cloud operating leverage
Google Cloud's financial trajectory shows meaningful operating leverage over recent years.
| Period | Cloud Revenue | Cloud Operating Income |
|---|---|---|
| 2023 full year | $33.1B | $1.7B |
| 2024 full year | $43.2B | $6.1B |
| 2025 full year | $58.7B | $13.9B |
| Q2 2025 | $13.6B | $2.8B |
| Q2 2026 | $24.8B | $8.8B |
The improvement from $1.7 billion in 2023 to $13.9 billion in 2025 operating income, on revenue growth from $33.1 billion to $58.7 billion, illustrates how scale and product mix can improve segment margins over time. The Q2 2026 year-over-year revenue growth rate of approximately 82% reflects both demand for cloud and AI infrastructure and the addition of TPU system sales.
Sources: Alphabet 2025 Form 10-K · Alphabet Q2 2026 Form 10-Q
Capital expenditure trends
Alphabet has entered an infrastructure-intense AI investment cycle. Capital expenditures have grown significantly.
| Period | Capital Expenditures |
|---|---|
| 2024 full year | $52.5B |
| 2025 full year | $91.4B |
| H1 2026 | $80.6B |
| Q2 2026 | $44.9B |
Alphabet says capital expenditures primarily support technical infrastructure including servers, networking and data centers. The company has stated that AI infrastructure and global compute are major capital priorities.
The question for investors is not whether high capex is automatically negative. It is whether the returns on that capex eventually justify the spending relative to the cost of capital.
Sources: Alphabet 2025 Form 10-K · Alphabet Q2 2026 Form 10-Q
Operating cash flow
Alphabet has historically generated strong operating cash flow. The comparison with capital expenditures matters for understanding free cash flow trends.
| Period | Operating Cash Flow | Capital Expenditures |
|---|---|---|
| 2025 full year | $164.7B | $91.4B |
| Q2 2026 | $39.1B | $44.9B |
In Q2 2026, capex exceeded operating cash flow for the quarter. One quarter should not be overinterpreted, but the pattern illustrates how a large infrastructure investment cycle can compress the free-cash-flow profile even when operating income is strong.
Sources: Alphabet 2025 Form 10-K · Alphabet Q2 2026 Form 10-Q
Traffic acquisition cost
Traffic acquisition cost (TAC) is the amount Alphabet pays to partners and network participants to obtain or distribute traffic. TAC is a deduction from the economics of advertising and should be watched alongside revenue growth.
The TAC rate is TAC as a percentage of advertising revenue. The rate declined from 20.7% in 2024 to 20.3% in 2025, primarily because of changes in revenue mix rather than structural improvements in distribution costs.
Investors should watch both the absolute TAC expense and the rate. A rising TAC rate could indicate that Alphabet is paying more to maintain distribution, which would compress advertising margins even if gross revenue grows.
Frequently Asked Questions
What was Alphabet's total revenue in 2025?
Alphabet reported total revenue of $402.8 billion for the full year 2025, with Google Services contributing $342.7 billion and Google Cloud contributing $58.7 billion.
What was Alphabet's total operating income in 2025?
Alphabet reported total operating income of $129.0 billion for 2025, including $139.4 billion from Google Services, $13.9 billion from Google Cloud, a $7.5 billion operating loss from Other Bets, and $16.8 billion of Alphabet-level costs.
How much did Alphabet spend on capital expenditures in 2025?
Alphabet spent $91.4 billion on capital expenditures in 2025, up from $52.5 billion in 2024. In the first half of 2026, capex reached $80.6 billion.
What is Alphabet's traffic acquisition cost?
Traffic acquisition cost, or TAC, is the amount Alphabet pays partners and network participants to obtain or distribute traffic. The TAC rate declined from 20.7% in 2024 to 20.3% in 2025, driven primarily by revenue mix changes.