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Alphabet Announces Third Quarter 2025 Results
MOUNTAIN VIEW, Calif. – October 29, 2025 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended September 30, 2025.
•Consolidated Alphabet revenues in Q3 2025 increased 16%, or 15% in constant currency, year over year to $102.3 billion. Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each delivered double-digit growth in Q3.
•Google Services revenues increased 14% to $87.1 billion, reflecting robust performance across Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads.
•Google Cloud revenues increased 34% to $15.2 billion, led by growth in Google Cloud Platform (GCP) across core products, AI Infrastructure and Generative AI Solutions.
•Total operating income increased 9% and operating margin was 30.5%. Excluding the $3.5 billion charge related to the European Commission (EC) fine, operating income increased 22% and operating margin was 33.9%, benefitting from strong revenue growth and continued efficiencies in the expense base.
•Other income reflected a net gain of $12.8 billion, primarily the result of net unrealized gains on our non-marketable equity securities.
•Net income increased 33% and EPS increased 35% to $2.87.
•With the growth across our business and demand from Cloud customers, we now expect 2025 capital expenditures to be in a range of $91 billion to $93 billion.

“Alphabet had a terrific quarter, with double-digit growth across every major part of our business. We delivered our first-ever $100 billion quarter,” said Sundar Pichai, CEO of Alphabet and Google.

“Our full stack approach to AI is delivering strong momentum and we’re shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time. In addition to topping leaderboards, our first party models, like Gemini, now process 7 billion tokens per minute, via direct API use by our customers. The Gemini App now has over 650 million monthly active users. We continue to drive strong growth in new businesses. Google Cloud accelerated, ending the quarter with $155 billion in backlog. And we have over 300 million paid subscriptions led by Google One and YouTube Premium.”

“We are investing to meet customer demand and capitalize on the growing opportunities across the company.”

Q3 2025 Financial Highlights (unaudited)
The following table summarizes our consolidated financial results for the quarters ended September 30, 2024 and 2025 (in millions, except for per share information and percentages).
Quarter Ended September 30,
20242025
Revenues$88,268 $102,346 
Change in revenues year over year15 %16 %
Change in constant currency revenues year over year(1)
16 %15 %
Operating income$28,521 $31,228 
Operating margin
32 %31 %
Other income (expense), net
$3,185 $12,759 
Net income$26,301 $34,979 
Diluted EPS$2.12 $2.87 


(1)    Non-GAAP measure. See the section captioned “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” for more details.
Q3 2025 Supplemental Information (in millions, except for number of employees; unaudited)
Revenues, Traffic Acquisition Costs (TAC), and Number of Employees

Quarter Ended September 30,
20242025
Google Search & other$49,385 $56,567 
YouTube ads8,921 10,261 
Google Network7,548 7,354 
Google advertising65,854 74,182 
Google subscriptions, platforms, and devices10,656 12,870 
Google Services total76,510 87,052 
Google Cloud11,353 15,157 
Other Bets388 344 
Hedging gains (losses)17 (207)
Total revenues$88,268 $102,346 
Total TAC$13,719 $14,876 
Number of employees
181,269190,167
Segment Operating Results

Quarter Ended September 30,
20242025
Operating income (loss):
Google Services(1)
$30,856 $33,527 
Google Cloud1,947 $3,594 
Other Bets(1,116)$(1,426)
Alphabet-level activities(2)
(3,166)$(4,467)
Total income from operations$28,521 $31,228 
(1)Includes the EC fine of $3.5 billion for the three months ended September 30, 2025.
(2)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $17 million and $(207) million for the three months ended September 30, 2024 and 2025, respectively. Alphabet-level activities include charges related to employee severance and office space charges.
Additional Information Relating to the Quarter Ended September 30, 2025 (unaudited)
EC Fine
On September 5, 2025, the EC announced its decision that Google had infringed European competition laws. The EC decision imposed a $3.5 billion fine which we accrued in general and administrative expenses in our Google Services segment for the three months ended September 30, 2025.
U.S. Tax Law
Changes to U.S. tax law enacted on July 4, 2025, allow, among other things, for immediate expensing of domestic research and experimentation costs and accelerated depreciation on eligible capital expenditures, the effects of which are included in operating cash flows for the three months ended September 30, 2025.
Dividend Program
Alphabet’s Board of Directors declared a quarterly cash dividend of $0.21 payable on December 15, 2025 to stockholders of record for each of the Company’s Class A, Class B, and Class C shares as of December 8, 2025.
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Webcast and Conference Call Information
A live audio webcast of our third quarter 2025 earnings release call will be available on YouTube at https://www.youtube.com/watch?v=hA1OEi6TRYU. The call begins today at 2:30 PM (PT) / 5:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available at http://abc.xyz/investor.
We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (http://abc.xyz/investor).
We also share Google news and product updates on Google's Keyword blog at https://www.blog.google/ and News From Google page on X at x.com/NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and LinkedIn, to communicate information about earnings results and company updates, which may be of interest or material to our investors.
Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 and our most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, which are on file with the SEC and are available on our investor relations website at http://abc.xyz/investor and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, and may be set forth in other reports and filings we make with the SEC. All information provided in this release and in the attachments is as of October 29, 2025. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: operating income, excluding the EC fine; operating margin, excluding the EC fine; free cash flow; constant currency revenues; and percentage change in constant currency revenues. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results, such as our revenues excluding the effect of foreign exchange rate movements and hedging activities, which are recognized at the consolidated level. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
For more information on these non-GAAP financial measures, please see the sections captioned “Reconciliation of GAAP Operating Income and Operating Margin to Non-GAAP Operating Income and Operating Margin, Excluding the EC Fine”, “Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow”, and “Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues” included at the end of this release.
Contact
Investor relations
Media
investor-relations@abc.xyzpress@abc.xyz

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Alphabet Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except par value per share amounts)
As of
December 31, 2024		As of
September 30, 2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents$23,466 $23,090 
Marketable securities72,191 75,406 
Total cash, cash equivalents, and marketable securities95,657 98,496 
Accounts receivable, net52,340 57,148 
Other current assets15,714 18,303 
Total current assets163,711 173,947 
Non-marketable securities37,982 63,800 
Deferred income taxes17,180 10,331 
Property and equipment, net171,036 223,787 
Operating lease assets13,588 14,524 
Goodwill31,885 33,269 
Other non-current assets14,874 16,811 
Total assets$450,256 $536,469 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$7,987 $10,546 
Accrued compensation and benefits15,069 13,944 
Accrued expenses and other current liabilities51,228 59,437 
Accrued revenue share9,802 10,081 
Deferred revenue5,036 5,542 
Total current liabilities89,122 99,550 
Long-term debt10,883 21,607 
Income taxes payable, non-current8,782 10,072 
Operating lease liabilities11,691 12,106 
Other long-term liabilities4,694 6,267 
Total liabilities125,172 149,602 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no shares issued and outstanding0 0 
Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,211 (Class A 5,835, Class B 861, Class C 5,515) and 12,077 (Class A 5,818, Class B 842, Class C 5,417) shares issued and outstanding
84,800 91,695 
Accumulated other comprehensive income (loss)(4,800)(2,054)
Retained earnings245,084 297,226 
Total stockholders’ equity325,084 386,867 
Total liabilities and stockholders’ equity$450,256 $536,469 
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Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts, unaudited)
Quarter Ended September 30,Year To Date September 30,
2024202520242025
Revenues$88,268 $102,346 $253,549 $289,007 
Costs and expenses:
Cost of revenues36,474 41,369 105,693 116,768 
Research and development12,447 15,151 36,210 42,515 
Sales and marketing7,227 7,205 20,445 20,478 
General and administrative3,599 7,393 9,783 16,141 
Total costs and expenses59,747 71,118 172,131 195,902 
Income from operations28,521 31,228 81,418 93,105 
Other income (expense), net3,185 12,759 6,154 26,604 
Income before income taxes31,706 43,987 87,572 119,709 
Provision for income taxes5,405 9,008 13,990 21,994 
Net income$26,301 $34,979 $73,582 $97,715 
Basic net income per share$2.14 $2.89 $5.96 $8.06 
Diluted net income per share$2.12 $2.87 $5.90 $7.99 
Number of shares used in basic earnings per share calculation12,290 12,086 12,349 12,130 
Number of shares used in diluted earnings per share calculation12,419 12,203 12,480 12,230 

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Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)
Quarter Ended September 30,Year To Date September 30,
2024202520242025
Operating activities
Net income$26,301 $34,979 $73,582 $97,715 
Adjustments:
Depreciation of property and equipment3,985 5,611 11,106 15,096 
Stock-based compensation expense5,846 6,368 16,975 17,882 
Deferred income taxes(1,071)8,726 (3,809)7,130 
Loss (gain) on debt and equity securities, net(1,981)(10,855)(2,738)(22,266)
Other1,407 (198)2,592 843 
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net(1,431)(2,381)(1,321)(3,582)
Income taxes, net(1,908)(858)(2,797)(3,292)
Other assets(802)(1,293)(2,334)(4,060)
Accounts payable521 (444)(42)(771)
Accrued expenses and other liabilities(1,190)7,759 (6,366)6,199 
Accrued revenue share381 319 478 100 
Deferred revenue640 681 860 1,317 
Net cash provided by operating activities30,698 48,414 86,186 112,311 
Investing activities
Purchases of property and equipment(13,061)(23,953)(38,259)(63,596)
Purchases of marketable securities(22,023)(20,964)(65,034)(60,834)
Maturities and sales of marketable securities23,202 20,371 81,779 61,301 
Purchases of non-marketable securities(1,035)(1,000)(3,234)(3,312)
Maturities and sales of non-marketable securities127 323 732 1,196 
Acquisitions, net of cash acquired, and purchases of intangible assets(2,753)(1,072)(2,840)(1,425)
Other investing activities(2,468)(1,482)(2,500)(1,845)
Net cash used in investing activities(18,011)(27,777)(29,356)(68,515)
Financing activities
Net payments related to stock-based award activities(3,003)(3,270)(9,141)(9,001)
Repurchases of stock(15,291)(11,504)(46,671)(40,210)
Dividend payments(2,455)(2,537)(4,921)(7,513)
Proceeds from issuance of debt, net of costs3,819 6,624 8,694 38,002 
Repayments of debt(3,449)(7,696)(8,951)(26,094)
Proceeds from sale of interest in consolidated entities, net285 0 293 400 
Net cash used in financing activities(20,094)(18,383)(60,697)(44,416)
Effect of exchange rate changes on cash and cash equivalents141 (200)(222)244 
Net increase (decrease) in cash and cash equivalents(7,266)2,054 (4,089)(376)
Cash and cash equivalents at beginning of period27,225 21,036 24,048 23,466 
Cash and cash equivalents at end of period$19,959 $23,090 $19,959 $23,090 

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Segment Results
The following table presents our segment revenues and operating income (loss) (in millions; unaudited):
Quarter Ended September 30,
20242025
Revenues:
Google Services$76,510 $87,052 
Google Cloud11,353 15,157 
Other Bets388 344 
Hedging gains (losses)17 (207)
Total revenues$88,268 $102,346 
Operating income (loss):
Google Services$30,856 $33,527 
Google Cloud1,947 3,594 
Other Bets(1,116)(1,426)
Alphabet-level activities
(3,166)(4,467)
Total income from operations$28,521 $31,228 
We report our segment results as Google Services, Google Cloud, and Other Bets:
•Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and devices.
•Google Cloud includes infrastructure and platform services, applications, and other services for enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services.
•Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of autonomous transportation services, healthcare-related services, and internet services.
Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include certain AI-focused shared R&D activities, including development costs of our general AI models; corporate initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with employee severance and office space reductions are also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments.

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Other Income (Expense), Net
The following table presents our other income (expense), net (in millions; unaudited):
Quarter Ended September 30,
20242025
Interest income$1,243 $1,076 
Interest expense(54)(143)
Foreign currency exchange gain (loss), net23 (143)
Gain (loss) on debt securities, net160 122 
Gain (loss) on equity securities, net(1)
1,821 10,734 
Performance fees29 (174)
Income (loss) and impairment from equity method investments, net(107)(30)
Other70 1,317 
Other income (expense), net$3,185 $12,759 
(1)Includes all gains and losses, unrealized and realized, on equity securities. For Q3 2025, the net effect of the gain on equity securities of $10.7 billion and the performance fees related to certain investments of $174 million increased the provision for income tax, net income, and diluted net income per share by $2.2 billion, $8.3 billion, and $0.68, respectively. Fluctuations in the value of our investments may be affected by market dynamics and other factors and could significantly contribute to the volatility of OI&E in future periods.

Reconciliation of GAAP Operating Income and Operating Margin to Non-GAAP Operating Income and Operating Margin, Excluding the EC Fine (in millions, except percentages; unaudited):
We provide the following non-GAAP measures because they provide useful information to management and investors about the effect of the EC fine on operating income and operating margin in the third quarter of 2025 for comparability to operating income and operating margin in the third quarter of 2024.
•Non-GAAP operating income, excluding the EC fine
•Non-GAAP operating margin, excluding the EC fine
These non-GAAP measures exclude the effect of the EC fine recorded during the third quarter of 2025. We calculate the percentage change by comparing operating income, excluding the EC fine recorded in the third quarter of 2025 to the prior year comparable quarter.
Quarter Ended September 30,
20242025
% Change
Revenues$88,268 $102,346 16 %
Operating income (GAAP)
$28,521 $31,228 9 %
    add: EC fine
0 3,457 
Operating income, excluding the EC fine (Non-GAAP)
$28,521 $34,685 22 %
Operating margin (GAAP)
32.3 %30.5 %
Operating margin, excluding the EC fine (Non-GAAP)
32.3 %33.9 %
Non-GAAP operating income, excluding the EC fine: We define Non-GAAP operating income, excluding the EC fine as operating income excluding the EC fine.
Non-GAAP operating margin, excluding the EC fine: We define Non-GAAP operating margin, excluding the EC fine as Non-GAAP operating income, excluding the EC fine divided by revenues.
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Reconciliation from GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (in millions; unaudited):
We provide non-GAAP free cash flow for the current quarter and trailing twelve months (“TTM”) because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.
Quarter Ended
TTM
Q4 2024
Q1 2025
Q2 2025
Q3 2025Q3 2025
Net cash provided by operating activities$39,113 $36,150 $27,747 $48,414 $151,424 
Less: purchases of property and equipment(14,276)(17,197)(22,446)(23,953)(77,872)
Free cash flow$24,837 $18,953 $5,301 $24,461 $73,552 
Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures.
TTM free cash flow: We define trailing twelve months free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months.


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Reconciliation from GAAP Revenues to Non-GAAP Constant Currency Revenues and GAAP Percentage Change in Revenues to Non-GAAP Percentage Change in Constant Currency Revenues (in millions, except percentages; unaudited):
We provide non-GAAP constant currency revenues (“constant currency revenues”) and non-GAAP percentage change in constant currency revenues (“percentage change in constant currency revenues”), because they facilitate the comparison of current results to historic performance by excluding the effect of foreign exchange rate movements (“FX Effect”) as well as hedging activities, which are recognized at the consolidated level, as they are not indicative of our core operating results.
Non-GAAP constant currency revenues is defined as revenues excluding the effect of foreign exchange rate movements and hedging activities and is calculated by translating current period revenues using prior period exchange rates and excluding any hedging effect recognized in the current period. We calculate the percentage change in constant currency revenues by comparing constant currency revenues to the prior year comparable period revenues, excluding any hedging effect recognized in the prior period.
Revenues by Geography
Comparison from the Quarter Ended September 30, 2024 to the Quarter Ended September 30, 2025
Quarter Ended September 30, 2025
% Change from Prior Period
Quarter Ended September 30,Less FX EffectConstant Currency RevenuesAs ReportedLess Hedging EffectLess FX EffectConstant Currency Revenues
20242025
United States$43,139 $48,758 $0 $48,758 13 %0 %13 %
EMEA25,472 29,911 1,261 28,650 17 %5 %12 %
APAC14,547 17,819 128 17,691 22 %0 %22 %
Other Americas5,093 6,065 (50)6,115 19 %(1)%20 %
Revenues, excluding hedging effect
88,251 102,553 1,339 101,214 16 %1 %15 %
Hedging gains (losses)17 (207)
Total revenues(1)
$88,268 $102,346 $101,214 16 %0 %1 %15 %
(1)Total constant currency revenues of $101.2 billion for the quarter ended September 30, 2025 increased $13.0 billion compared to $88.3 billion in revenues, excluding hedging effect, for the quarter ended September 30, 2024.
Comparison from the Quarter Ended June 30, 2025 to the Quarter Ended September 30, 2025
Quarter Ended September 30, 2025
% Change from Prior Period
Quarter EndedLess FX EffectConstant Currency RevenuesAs ReportedLess Hedging EffectLess FX EffectConstant Currency Revenues
June 30, 2025September 30, 2025
United States$46,063 $48,758 $0 $48,758 6 %0 %6 %
EMEA28,262 29,911 753 29,158 6 %3 %3 %
APAC16,480 17,819 75 17,744 8 %0 %8 %
Other Americas5,735 6,065 90 5,975 6 %2 %4 %
Revenues, excluding hedging effect96,540 102,553 918 101,635 6 %1 %5 %
Hedging gains (losses)(112)(207)
Total revenues(1)
$96,428 $102,346 $101,635 6 %0 %1 %5 %
(1)Total constant currency revenues of $101.6 billion for the quarter ended September 30, 2025 increased $5.1 billion compared to $96.5 billion in revenues, excluding hedging effect, for the quarter ended June 30, 2025.







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Total Revenues — Prior Year Comparative Periods
Comparison from the Quarter Ended September 30, 2023 to the Quarter Ended September 30, 2024
Quarter Ended September 30, 2024
Quarter Ended September 30,% Change from Prior Period
 Less FX EffectConstant Currency RevenuesAs ReportedLess Hedging EffectLess FX EffectConstant Currency Revenues
20232024
Revenues excluding hedging effect$76,694 $88,251 $(1,017)$89,268 15 %(1)%16 %
Hedging gains (losses)$(1)$17 
Total revenues$76,693 $88,268 $89,268 15 %0 %(1)%16 %

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