Google Cloud revenue in the fourth quarter were $12 billion, up 30% from a year ago, amid mixed results from parent Alphabet, which said it will spend $75 billion in capital expenditures in 2025.
The company reported net income of $26.54 billion, or $2.15 a share, on revenue of $96.47 billion, up 12%. Wall Street was expecting Alphabet to report fourth quarter earnings of $2.13 a share on revenue of $96.67 billion.
For 2025, Alphabet reported earnings of $100.1 billion, or $8.04 a share, on revenue of $350.02 billion, up 14%.
- Google Cloud launches Agentspace to create, deploy agents
- Oracle scales Oracle Database@Google Cloud
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Google Workspace drops Gemini add-on charge, raises business, enterprise plan prices
Sundar Pichai, CEO of Alphabet, said:
"We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies. In Search, advances like AI Overviews and Circle to Search are increasing user engagement. Our AI-powered Google Cloud portfolio is seeing stronger customer demand."
By the numbers:
- Google Cloud revenue in the fourth quarter was $11.95 billion, up 30% from $9.19 billion a year ago. Microsoft Azure put up quarterly revenue growth of 31%. Operating income for Google Cloud was $2.09 billion, up from $864 million in the fourth quarter a year ago.
- Google search revenue in the fourth quarter were $54.03 billion.
- Google advertising revenue was $72.46 billion.
- Google services operating income was $32.84 billion and that unit includes the Gemini team.
- Alphabet ended the quarter with 183,323 employees.
Pichai said the following on the company's earnings call:
- "Cloud customers consume more than eight times the compute capacity for training and inferencing compared to 18 months ago."
- "We are working on even better thinking models and look forward to sharing those with the developer community soon. We're also excited by the progress of our video and image generation models."
- 4.4 million developers are using Gemini models, double from six months ago.
- AI overviews are now available in more than 100 countries. Circle to Search is now available on over 200 million Android devices in cloud and YouTube.
- "Those who have tried Circle to Search before now use it to start more than 10% of their searches."
- The number of first-time commitments to Google Cloud doubled in 2024 and the company is closing more strategic deals over $1 billion and doubled the number of $250 million deals.
- Vertex AI saw a 5x increase in customers in the fourth quarter compared to a year ago.
- Waymo is averaging more than 150,000 trips each week.
