Mumbai, February 5: Alphabet, the parent company of Google, has officially breached the USD 400 billion mark in annual revenue for the first time in its history. The company announced the milestone during its Q4 2025 earnings call on Wednesday, reporting a 15 per cent year-over-year increase in revenue, driven by explosive growth in its cloud division and a surge in YouTube subscriptions.

Elon Musk congratulated Google CEO Sundar Pichai on 5 February 2026 after Alphabet reported historic financial results. In a brief post on X replying to Pichai’s announcement, Musk wrote simply, “Well done,” in response to the company surpassing USD 400 billion in annual revenue for the first time in its fiscal year 2025 fourth-quarter earnings. Pichai highlighted strong AI momentum, particularly the rapid adoption of the Gemini 3 model, crediting the full AI stack with driving growth. The positive exchange underscores ongoing competition and mutual respect within the tech industry amid intensifying AI races between companies such as Google and Musk’s xAI. Washington Post Layoffs: Jeff Bezos-Owned Newspaper Cuts One-Third of Workforce Amid Declining Traffic and Business Model Overhaul.

Elon Musk Congratulates Sundar Pichai for Alphabet Q4 2025 Earnings

The results highlight Alphabet's successful transition into an AI-first organisation, with its Gemini platform becoming a primary driver of user engagement. Chief Executive Officer Sundar Pichai stated that the company is "reinventing" its core products, including Search and YouTube, to integrate agentic AI features that offer more personalised experiences for its global user base.

Alphabet Q4 Revenue Growth

The company's Cloud business reached a USD 70 billion run rate in 2025, while YouTube’s annual revenue soared beyond USD 60 billion across advertising and its expanding subscription tiers. Alphabet now boasts more than 325 million paid subscribers, a growth trajectory led by Google One and YouTube Premium. Pichai noted that YouTube remains the "number one streamer" globally, maintaining a significant lead over traditional and digital competitors.

Google’s capital expenditure continues to scale as the company expands its infrastructure to meet the rising demand for generative AI. In his address to investors, Pichai highlighted that Google Search saw more usage over the past few months than ever before, with daily queries in "AI Mode" doubling since the initial launch of the feature.

Google Gemini User Milestone

Artificial intelligence adoption has reached new heights with the Gemini app surpassing 750 million users. This surge followed the November 2025 launch of Gemini 3, which added 100 million users to the platform in just three months. The company also confirmed that a custom version of Gemini 3 is set to power a more personalised version of Apple’s Siri, further expanding Google's AI footprint across the mobile ecosystem. Netflix-Warner Bros. Discovery Deal Faces US Senate Scrutiny Over Antitrust Risks and Market Dominance.

To capitalise on the popularity of its AI tools, Google plans to build an "agentic checkout" feature into both the Gemini app and Search’s AI Mode. This tool will allow users to complete purchases and transactions directly through the AI interface. As Alphabet enters 2026, the company remains focused on integrating these agentic capabilities to drive further revenue growth and user retention.

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(The above story first appeared on LatestLY on Feb 05, 2026 07:22 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).