Google reported its earnings today, its Q4 2025 earnings report showed ad revenues up by 14% at $82.3 billion and overall revenue was up 17% at $113.8 billion. I specifically like to dig in as best as I can on the ad revenue side to see how Google Ads have performed.

Google's ad revenue was up again year-over-year, with an increase of 13.6%, and overall revenue is also up 17%. Microsoft reported earnings last week, its ad revenue grew 10% but that seemed to slow from previous quarters.

If you want to compare Q3 2025 to Q4 2025, you will see ad revenue was up 10.9%, overall revenue was up 11.2% and profit was 16%.

Alphabet finance chief Anat Ashkenazi said, "advertising results were negatively affected from the lapping of the strong spend on U.S. election in the fourth quarter of 2024."

Sundar Pichai, Google's CEO, said:

It was a tremendous quarter for Alphabet and annual revenues exceeded $400 billion for the first time. The launch of Gemini 3 was a major milestone and we have great momentum. Our first party models, like Gemini, now process over 10 billion tokens per minute via direct API use by our customers, and the Gemini App has grown to over 750 million monthly active users. Search saw more usage than ever before, with AI continuing to drive an expansionary moment.

We continue to drive strong growth across the business. YouTube's annual revenues surpassed $60 billion across ads and subscriptions; we now have over 325 million paid subscriptions across consumer services, led by strong adoption for Google One and YouTube Premium. And Google Cloud ended 2025 at an annual run rate of over $70 billion, representing a wide breadth of customers, driven by demand for AI products.

We're seeing our AI investments and infrastructure drive revenue and growth across the board. To meet customer demand and capitalize on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185 billion.

Here is a chart plotting Google's overall revenue, then ad revenue and then profit over the past several quarters:

Here is the snippet from the earnings report:

Highlights from Google earnings:

• Consolidated Alphabet revenues increased 18%, or 17% in constant currency, to $113.8 billion, reflecting strong momentum across the business and acceleration in growth in both Google Services and Google Cloud.
• Google Services revenues increased 14% to $95.9 billion, led by 17% growth in Google Search & other, 17% in Google subscriptions, platforms, and devices, and 9% in YouTube ads.
• YouTube revenue across ads and subscriptions exceeded $60 billion for the full year 2025.
• Google Cloud saw a continued increase in customer demand as revenues increased 48% to $17.7 billion, led by an increase in Google Cloud Platform (GCP) across enterprise AI Infrastructure and enterprise AI Solutions, as well as core GCP products.
• Consolidated Alphabet operating income increased 16% and operating margin was 31.6%. Operating income included a $2.1 billion employee compensation charge for Waymo.
• Net income increased 30% and EPS increased 31% to $2.82.

Our Q4/FY'25 results are in. Thanks to our partners & employees, it was a tremendous quarter, exceeding $400B in annual revenue for the first time. Our full AI stack is fueling our progress, and Gemini 3 adoption has been faster than any other model in our history.

We're really'... pic.twitter.com/UbcQPFRGkr

'" Sundar Pichai (@sundarpichai) February 4, 2026

Sundar Pichai posted his remarks on this past quarter, specific to search he said:

Search saw more usage in Q4 than ever before, as AI continues to drive an expansionary moment. We've executed with incredible speed. We shipped over 250 product launches within AI Mode and AI Overviews just last quarter.

We've integrated Gemini 3 directly into AI Mode in Search. Now, Search can better understand your query, dive deeper on the web, and generate interactive UI experiences. And last week, we upgraded AI Overviews to Gemini 3, giving users a best-in-class AI response at the top of the search results page.

We've also made the Search experience more cohesive, ensuring the transition from an AI Overview to a conversation in AI Mode is completely seamless. These new experiences are proving to be more helpful and are driving greater usage. A few highlights:

- First, once people start using these new experiences, they use them more. In the US, we saw daily AI Mode queries per user double since launch and AI Overviews continue to perform very well.
- Second, people are engaging in longer, more complex sessions. Queries in AI Mode are three-times longer than traditional searches. We are also seeing sessions become more conversational, with a significant portion of queries in AI Mode now leading to a follow-up question.
- Third, people are searching in new ways beyond text. Nearly one in six AI Mode queries are now non-text, using voice or images. And Circle to Search is now available on over 580 million Android devices.

Forum discussion at X.

Google is appealing the ruling that it is an illegal search monopoly - which surprises no one. Plus, Google asked the court to pause the remedies during the appeal phase.

Just a reminder, even with the monopoly ruling, Google was let down super easy with the remedies.

Google wrote, "Today we filed our notice to appeal the DOJ Search decision, and asked the Court to pause some of the remedies while that appeal is heard."

Google also added:

As we have long said, the Court's August 2024 ruling ignored the reality that people use Google because they want to, not because they're forced to. The decision failed to account for the rapid pace of innovation and intense competition we face from established players and well-funded start-ups. And it discounted compelling testimony from browser makers like Apple and Mozilla who said they choose to feature Google because it provides the highest quality search experience for their consumers.

While we appeal this decision, we're asking to pause the implementation of specific remedies that would force us to share search data and provide syndication services to rivals. These mandates would risk Americans' privacy and discourage competitors from building their own products '" ultimately stifling the innovation that keeps the U.S. at the forefront of global technology. We look forward to making our case in court later this year.

It would be cool if appealing this could lead to harsher remedies, but I doubt it works that way?

Forum discussion at X.