Key Facts on Alphabet’s Q4 2025 Performance
Alphabet Inc. (NASDAQ: GOOGL) reported its Q4 2025 results on February 6, 2026, exceeding Wall Street estimates with a 2.4% revenue surprise and a 6.8% earnings outperformance. Google Cloud revenue surged 48% year-over-year to $17.7 billion, representing 15.5% of Alphabet’s total revenues. The cloud segment’s operating income increased by 154%, reaching $5.3 billion.
Despite these robust numbers, Alphabet’s stock experienced a 6.5% decline post-report, translating to a loss of approximately $250 billion in market value, bringing its total market cap to $3.9 trillion. The company’s forward price-to-earnings ratio stands at 24x, with a PEG ratio of 2.0, indicating a cautious market outlook even amid strong growth in the AI domain.
Looking ahead, Alphabet plans to double its capital expense budget by 2026 to support Google Cloud’s growth, with its operating margin nearly doubling from 17.5% to 29.9% over the last year.
