GOOG Alphabet Inc.

Overview and Growth

In fiscal 2025, Alphabet Inc. recorded $402.84B of revenue, net income of $132.17B, and an operating cash inflow of $164.71B. Revenue of $402.84B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $350.02B in fiscal 2024, revenue recorded a 15.1% year-over-year increase. The company reported diluted EPS of $10.81, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 34.5% increase from fiscal 2024 diluted EPS of $8.04. Revenue equaled 0.68x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $240.30B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 59.7% of revenue, showing how much of the top line remained after direct costs. Operations produced $129.04B of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 32.0%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $132.17B, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 32.8% margin after operating costs and the remaining recognized items. Pretax income was $158.83B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 39.4%, relating income before taxes directly to revenue. The reported income-tax provision was $26.66B, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 16.8% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

At period end, the $595.28B asset base was financed through $180.02B of liabilities and $415.26B of equity. Current assets were $206.04B against $102.75B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 2.01x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $30.71B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 29.9%, excluding receivables and other current assets. The company carried $48.54B of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.12x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 8.2%, showing how much of the asset base was matched by borrowing. Liabilities represented 30.2% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 5.2%, a balance-sheet composition measure rather than a liquidity forecast.

Cash Flow and Earnings Quality

The company reported $164.71B of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.25x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $91.45B, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 55.5% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $73.27B of positive free cash flow for the period. Relative to revenue, free cash flow equaled 18.2%, showing how much sales converted into cash after investment. Free cash flow equaled 12.3% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 26, 2026.