A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website, located at abc.xyz/investor. Backlog grew by 55% quarter-over-quarter to $240 billion, representing a wide breadth of customers driven by demand for AI products. Overall, we are seeing our AI investments and infrastructure drive revenue and growth across the board. To meet customer demand and capitalize on the growing opportunities ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 billion-$185 billion.
Our latest model powers Google Antigravity, our new development platform, where agents can autonomously plan and execute complex software tasks. Our growth in revenue, operating margin, and backlog highlights the strength of our entire portfolio. These AI customers use 1.8 times as many products as those who do not, enabling us to diversify our product portfolio, deepen customer relationships, and accelerate revenue growth. Our product line has multiple monetization levers, spanning infrastructure, platform, and high-margin AI-powered products and services, with 14 product lines, each exceeding $1 billion in annual revenue.
Our 10-year track record in building our own accelerators with expertise in chips, systems, networking, and software translates to leading power and performance efficiency for large-scale inference and training. Our cloud AI accelerators serve the leading frontier AI labs, capital markets firms like Citadel Securities, enterprises like Mercedes-Benz, and governments for high-performance computing applications. In Q4, revenue from products built on our generative AI models grew nearly 400% year-over-year, significantly accelerating from the prior quarter. Gemini is becoming the AI engine for the world's most successful software companies.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year CapEx | FY2025 (actual) | $91.4 billion actual |
| Full-year CapEx | FY2026 | $175 billion-$185 billion |
| ML compute allocation to Cloud | FY2026 | just over half of ML compute expected toward Cloud |
| Depreciation growth rate | FY2026 | expected to accelerate in Q1 and increase meaningfully for the full year |
| Metric | YoY | Note |
|---|---|---|
| Consolidated revenue | +18% (17% cc) | Acceleration in Search and Cloud revenues. |
| Google Search and other revenue | +17% | Growth across all major verticals, largest contribution from retail; AI-driven expansionary moment for Search. |
| YouTube advertising revenue | +9% | Driven by direct response; negatively affected by lapping strong 2024 U.S. election spend and some brand-vertical softness. |
| Network advertising revenue | -2% | Continued network decline. |
| Subscriptions, platforms and devices revenue | +17% | Strong YouTube subscriptions (Music and Premium) and Google One growth from AI-plan demand. |
| Google Cloud revenue | +48% | Strong GCP performance; accelerating enterprise AI products, TPU/GPU deployment, and Gemini 3 demand; core GCP also meaningful. |
| Google Cloud operating income | more than doubled to $5.3 billion (margin 17.5%->30.1%) | Strong revenue growth and expense efficiency, partly offset by higher technical infrastructure and depreciation costs. |
| Google Services operating income | +22% | Strong Search and subscriptions growth; margin 41.9%. |
| Alphabet operating income | +16% | Operating margin 31.6%, negatively impacted by the $2.1 billion Waymo charge. |
| Net income | +30% | Grew to $34.5 billion, aided by $3.2 billion other income from unrealized equity gains. |
| Earnings per share | +31% | Net income growth; EPS $2.82. |
| Other Bets revenue | $370 million (operating loss $3.6 billion) | Loss reflects the $2.1 billion Waymo stock-based compensation charge. |
| Depreciation expense (full year) | +38% (to $21.1 billion) | Significant technical-infrastructure CapEx build-out flowing to the P&L. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Cloud revenue growth rate | +34% (Q3) | +48% | — |
| Cloud backlog | $155 billion (Q3) | $240 billion (+55% sequential, more than doubled YoY) | — |
| Full-year CapEx | $91-93 billion guided | $91.4 billion actual; 2026 guided to $175-185 billion | — |
| Gemini app monthly active users | 650 million (Q3) | over 750 million | — |
| First-party model token throughput | 7 billion tokens per minute (Q3) | over 10 billion tokens per minute | — |
| GenAI-model product revenue growth | more than 200% YoY (Q3) | nearly 400% YoY | — |
| Cloud product lines above $1B annual revenue | 13 (Q3) | 14 | — |
| Paid consumer subscriptions | 300 million+ (Q3) | over 325 million | — |