Alphabet Inc. (GOOG) Income Statement

24Y historyFree accessUpdated daily

Revenue growth accelerated to 24.2% YoY in 2026Q2 with gross margin expanding to 61.6%, yet net margin of 93.7% and EPS of $9.11 versus $2.31 a year ago suggest possible one-time items inflating earnings.

Annual statement

GOOG Income Statement

Alphabet Inc. (GOOG) annual income statement — 24-year revenue, gross profit & net income history

Annual Quarterly

Metric	TTM	Dec'25	Dec'24	Dec'23	Dec'22	Dec'21	Dec'20	Dec'19	Dec'18	Dec'17	Dec'16	Dec'15	Dec'14	Dec'13	Dec'12	Dec'11	Dec'10	Dec'09	Dec'08	Dec'07	Dec'06	Dec'05	Dec'04	Dec'03	Dec'02

Sales/Revenue	445.87B	402.96B	350.02B	307.39B	282.84B	257.64B	182.53B	161.86B	136.82B	110.86B	90.27B	74.99B	66B	55.52B	46.04B	37.91B	29.32B	23.65B	21.8B	16.59B	10.6B	6.14B	3.19B	1.47B	439.51M
Revenue Growth %	20.05%	15.13%	13.87%	8.68%	9.78%	41.15%	12.77%	18.3%	23.42%	22.8%	20.38%	13.62%	18.88%	20.59%	21.46%	29.28%	23.97%	8.51%	31.35%	56.47%	72.76%	92.48%	117.56%	233.54%	-
Cost of Goods Sold	174.35B	162.53B	146.31B	133.33B	126.2B	110.94B	84.73B	71.9B	59.55B	45.58B	35.14B	28.16B	25.69B	21.99B	17.18B	13.19B	10.42B	8.84B	8.62B	6.65B	4.23B	2.58B	1.46B	625.85M	131.51M
COGS % of Revenue	-	40.34%	41.8%	43.38%	44.62%	43.06%	46.42%	44.42%	43.52%	41.12%	38.92%	37.56%	38.93%	39.61%	37.31%	34.79%	35.53%	37.39%	39.56%	40.07%	39.84%	41.98%	45.71%	42.69%	29.92%
Gross Profit	271.52B	240.43B	203.71B	174.06B	156.63B	146.7B	97.8B	89.96B	77.27B	65.27B	55.13B	46.83B	40.31B	33.53B	28.86B	24.72B	18.9B	14.81B	13.17B	9.94B	6.38B	3.56B	1.73B	840.08M	308M
Gross Margin %	60.9%	59.66%	58.2%	56.63%	55.38%	56.94%	53.58%	55.58%	56.48%	58.88%	61.08%	62.44%	61.07%	60.39%	62.69%	65.21%	64.47%	62.61%	60.44%	59.93%	60.16%	58.02%	54.29%	57.31%	70.08%
Gross Profit Growth %	-	18.02%	17.03%	11.13%	6.77%	50.01%	8.71%	16.42%	18.38%	18.39%	17.74%	16.16%	20.23%	16.16%	16.77%	30.75%	27.67%	12.4%	32.47%	55.88%	79.14%	105.68%	106.12%	172.75%	-
Operating Expenses	123.89B	111.26B	91.32B	89.77B	81.79B	67.98B	56.57B	55.73B	49.75B	39.09B	31.42B	27.46B	23.81B	18.12B	15.03B	12.97B	8.52B	6.5B	6.54B	4.86B	2.83B	1.54B	1.09B	497.62M	121.53M
OpEx % of Revenue	-	27.61%	26.09%	29.2%	28.92%	26.39%	30.99%	34.43%	36.36%	35.27%	34.8%	36.63%	36.08%	32.64%	32.64%	34.23%	29.07%	27.46%	30.01%	29.29%	26.68%	25.16%	34.22%	33.95%	27.65%
Selling, General & Admin	54.91B	50.17B	42B	44.34B	42.29B	36.42B	29B	28.02B	23.26B	19.73B	17.47B	15.18B	13.98B	10.99B	8.95B	7.31B	4.76B	3.65B	3.75B	2.74B	1.6B	854.68M	664.75M	406.39M	89.78M
SG&A % of Revenue	-	12.45%	12%	14.43%	14.95%	14.14%	15.89%	17.31%	17%	17.8%	19.35%	20.25%	21.18%	19.79%	19.43%	19.29%	16.24%	15.44%	17.2%	16.52%	15.1%	13.92%	20.84%	27.72%	20.43%
Research & Development	68.97B	61.09B	49.33B	45.43B	39.5B	31.56B	27.57B	26.02B	21.42B	16.63B	13.95B	12.28B	9.83B	7.14B	6.08B	5.16B	3.76B	2.84B	2.79B	2.12B	1.23B	599.51M	225.63M	91.23M	31.75M
R&D % of Revenue	-	15.16%	14.09%	14.78%	13.97%	12.25%	15.11%	16.07%	15.65%	15%	15.45%	16.38%	14.9%	12.86%	13.21%	13.62%	12.83%	12.02%	12.81%	12.78%	11.59%	9.77%	7.07%	6.22%	7.22%
Other Operating Expenses	0	0	0	0	0	0	0	1.7B	5.07B	2.74B	0	0	0	0	0	500M	0	0	0	0	0	90M	201M	0	0
Operating Income	147.63B	129.17B	112.39B	84.29B	74.84B	78.71B	41.22B	34.23B	27.52B	26.18B	23.72B	19.36B	16.5B	15.4B	13.83B	11.74B	10.38B	8.31B	6.63B	5.08B	3.55B	2.02B	640.19M	342.46M	186.47M
Operating Margin %	33.11%	32.05%	32.11%	27.42%	26.46%	30.55%	22.59%	21.15%	20.12%	23.61%	26.27%	25.82%	24.99%	27.74%	30.05%	30.98%	35.4%	35.14%	30.43%	30.64%	33.48%	32.86%	20.07%	23.36%	42.43%
Operating Income Growth %	-	14.93%	33.33%	12.63%	-4.92%	90.94%	20.43%	24.37%	5.14%	10.38%	22.5%	17.36%	7.1%	11.34%	17.82%	13.11%	24.89%	25.33%	30.44%	43.22%	75.98%	215.11%	86.94%	83.66%	-
EBITDA	172.87B	150.3B	127.7B	96.24B	88.32B	91.16B	54.92B	46.01B	36.56B	33.09B	29.86B	24.42B	21.48B	19.34B	16.8B	13.59B	11.78B	9.84B	8.13B	6.05B	4.12B	2.31B	788.66M	397.51M	215.45M
EBITDA Margin %	38.77%	37.3%	36.48%	31.31%	31.23%	35.38%	30.09%	28.43%	26.72%	29.85%	33.08%	32.57%	32.54%	34.84%	36.48%	35.86%	40.17%	41.59%	37.31%	36.47%	38.87%	37.65%	24.73%	27.12%	49.02%
EBITDA Growth %	24.32%	17.7%	32.69%	8.97%	-3.11%	65.97%	19.36%	25.86%	10.47%	10.83%	22.26%	13.73%	11.03%	15.16%	23.56%	15.42%	19.73%	20.95%	34.37%	46.83%	78.35%	193.04%	98.4%	84.5%	-
D&A (Non-Cash Add-back)	25.24B	21.14B	15.31B	11.95B	13.47B	12.44B	13.7B	11.78B	9.04B	6.92B	6.14B	5.06B	4.98B	3.94B	2.96B	1.85B	1.4B	1.52B	1.5B	967.66M	571.94M	293.81M	148.47M	55.05M	28.98M
EBIT	301.52B	158.83B	120.08B	86.03B	71.69B	91.08B	48.22B	39.73B	35.03B	27.3B	24.27B	19.75B	17.36B	15.98B	14.55B	12.38B	10.8B	8.38B	6.63B	5.08B	3.55B	2.14B	651.1M	348.58M	187.49M
Net Interest Income	2.84B	933M	4.21B	3.56B	1.82B	1.15B	1.73B	2.33B	1.76B	1.2B	1.1B	895M	645M	685M	615M	754M	574M	230M	390M	559.21M	412.06M	120.26M	15.13M	732K	-1.35M
Interest Income	5.1B	1.08B	4.48B	3.87B	2.17B	1.5B	1.86B	2.43B	1.88B	1.31B	1.22B	999M	746M	766M	700M	812M	579M	230M	390M	559.21M	412.06M	121.04M	16M	2.66M	1.22M
Interest Expense	2.25B	143M	268M	308M	357M	346M	135M	100M	114M	109M	124M	104M	101M	81M	85M	58M	5M	0	0	0	0	776K	862K	1.93M	2.57M
Other Income/Expense	151.64B	29.66B	7.42B	1.42B	-3.51B	12.02B	6.86B	5.39B	7.39B	1.01B	434M	291M	763M	496M	635M	584M	415M	69M	-779M	589.58M	461.04M	124.4M	10.04M	4.19M	-1.55M
Pretax Income	299.27B	158.83B	119.81B	85.72B	71.33B	90.73B	48.08B	39.63B	34.91B	27.19B	24.15B	19.65B	17.26B	15.9B	14.47B	12.33B	10.8B	8.38B	5.85B	5.67B	4.01B	2.14B	650.23M	346.65M	184.91M
Pretax Margin %	67.12%	39.41%	34.23%	27.89%	25.22%	35.22%	26.34%	24.48%	25.52%	24.53%	26.75%	26.21%	26.15%	28.64%	31.43%	32.52%	36.82%	35.44%	26.85%	34.19%	37.82%	34.89%	20.39%	23.65%	42.07%
Income Tax	55.06B	26.66B	19.7B	11.92B	11.36B	14.7B	7.81B	5.28B	4.18B	14.53B	4.67B	3.3B	3.64B	2.74B	2.92B	2.59B	2.29B	1.86B	1.63B	1.47B	933.59M	676.28M	251.12M	241.01M	85.26M
Effective Tax Rate %	18.4%	16.78%	16.44%	13.91%	15.92%	16.2%	16.25%	13.33%	11.96%	53.44%	19.35%	16.81%	21.08%	17.23%	20.15%	21%	21.22%	22.2%	27.78%	25.91%	23.28%	31.58%	38.62%	69.52%	46.11%
Net Income	244.21B	132.17B	100.12B	73.8B	59.97B	76.03B	40.27B	34.34B	30.74B	12.66B	19.48B	16.35B	14.14B	12.73B	10.74B	9.74B	8.51B	6.52B	4.23B	4.2B	3.08B	1.47B	399.12M	105.65M	99.66M
Net Margin %	54.77%	32.8%	28.6%	24.01%	21.2%	29.51%	22.06%	21.22%	22.46%	11.42%	21.58%	21.8%	21.42%	22.93%	23.32%	25.69%	29.01%	27.57%	19.39%	25.33%	29.02%	23.87%	12.51%	7.21%	22.67%
Net Income Growth %	111.3%	32.01%	35.67%	23.05%	-21.12%	88.81%	17.26%	11.74%	142.74%	-34.99%	19.15%	15.65%	11.02%	18.59%	10.27%	14.49%	30.44%	54.25%	0.55%	36.6%	110.01%	267.16%	277.78%	6.01%	-
Net Income (Continuing)	244.21B	132.17B	100.12B	73.8B	59.97B	76.03B	40.27B	34.34B	30.74B	12.66B	19.48B	16.35B	13.62B	13.16B	11.55B	9.74B	8.51B	6.52B	4.23B	4.2B	3.08B	1.47B	399.12M	105.65M	99.66M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0	0	0	516M	-427M	-816M	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)	19.84	10.81	8.04	5.80	4.56	5.61	2.93	2.46	2.19	0.90	1.39	1.14	1.05	0.95	0.81	0.74	0.66	0.51	0.33	0.33	0.25	0.13	0.04	0.01	0.01
EPS Growth %	112.03%	34.45%	38.62%	27.19%	-18.72%	91.47%	19.11%	12.33%	143.33%	-35.25%	21.93%	8.57%	10.53%	17.28%	9.46%	12.12%	29.41%	54.55%	0%	32%	92.31%	256.16%	-	-26.21%	-
EPS (Basic)	-	10.91	8.13	5.84	4.59	5.69	2.96	2.48	2.21	0.91	1.42	1.16	1.07	0.97	0.82	0.75	0.67	0.52	0.34	0.34	0.26	0.13	0.04	0.01	0.01
Diluted Shares Outstanding	12.31B	12.23B	12.45B	12.72B	13.16B	13.55B	13.74B	13.97B	14.07B	14.07B	13.99B	13.86B	13.74B	13.55B	13.29B	13.09B	12.93B	12.78B	12.7B	12.65B	12.38B	11.67B	10.93B	13.99B	9.69B
Basic Shares Outstanding	12.15B	12.12B	12.32B	12.63B	13.06B	13.35B	13.62B	13.85B	13.9B	13.86B	13.76B	13.7B	13.52B	13.31B	13.09B	12.91B	12.75B	12.65B	12.56B	12.43B	12.06B	11.03B	10.93B	13.75B	9.69B
Dividend Payout Ratio	-	7.6%	7.35%	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Key Metrics

Growth RegimeAccelerating

ProfitabilityStrong

Balance SheetFortress

Cash FlowRobust

Top Statement Risk

Earnings quality after massive beat

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Accelerating Growth on AI Tailwinds

Revenue growth accelerated to 24.2% YoY in 2026Q2, up from 13.8% a year earlier, driven by Google Cloud's 82% surge, as reported in the latest quarterly results.

The sequential acceleration from 21.8% in 2026Q1 to 24.2% in 2026Q2 suggests that AI-driven demand is broadening beyond Cloud into core Search and YouTube. The 10-quarter trend shows a clear inflection beginning in 2025Q3, with growth climbing from 15.9% to 24.2% in four quarters. This pace appears sustainable in the near term given the Cloud backlog, but investors should monitor whether the acceleration is broad-based or concentrated in AI infrastructure contracts.

Gross Margin Expansion Amid Cloud Mix Shift

Gross margin improved to 61.6% in 2026Q2, up from 59.5% a year earlier, despite the dilutive mix shift toward Google Cloud, according to the income statement data.

The 210 basis point YoY expansion in gross margin suggests that AI-driven efficiencies and pricing power in Cloud are offsetting the higher infrastructure costs typically associated with that segment. Operating margin also expanded to 34.0% from 32.4% in the prior year, indicating that the company is not sacrificing profitability for growth. However, the sustainability of this margin expansion is uncertain given the heavy depreciation of AI hardware and potential increases in TAC.

Operating Leverage Driving Margin Upside

Operating income grew 30.4% YoY in 2026Q2, outpacing revenue growth of 24.2%, as SG&A grew only 21.1%, based on the reported quarterly figures.

The operating leverage is evident in the 2026Q2 results, where operating margin expanded to 34.0% from 32.4% a year earlier. R&D grew 31.9% YoY, slightly above revenue, but SG&A grew at a slower pace, indicating disciplined overhead management. This suggests that the company is scaling efficiently, though the elevated R&D spending reflects the ongoing investment in AI infrastructure that could pressure margins if revenue growth decelerates.

Earnings Quality Questioned by Massive Beat

Net income surged to $112.2B in 2026Q2, a 298% YoY increase, with EPS of $9.11 versus $2.31 a year ago, per the latest income statement.

The magnitude of the EPS beat ($9.11 actual vs. $3.00 estimate) raises questions about earnings quality, as the net margin of 93.7% is unusually high and suggests significant non-operating gains or one-time tax benefits. The reported net income is nearly triple the operating income, implying that non-operating items, possibly unrealized gains on equity investments, are inflating earnings. Investors should adjust for these items to assess the underlying profitability, as the core operating margin of 34.0% is more indicative of the business's earning power.

R&D Intensity Reflects AI Arms Race

R&D expenses reached $18.2B in 2026Q2, up 31.9% YoY, representing 15.2% of revenue, as disclosed in the quarterly income statement.

The sustained increase in R&D spending, from $11.9B in 2024Q1 to $18.2B in 2026Q2, underscores the company's commitment to AI and cloud infrastructure. While this investment is necessary to maintain competitive positioning, it also pressures margins and free cash flow. The growth in R&D is outpacing revenue growth, which may indicate that the company is prioritizing long-term AI leadership over near-term profitability, a trade-off that warrants monitoring.

What Could Invalidate the AI Growth Story

The 2026Q2 net margin of 93.7% and EPS of $9.11 versus consensus of $3.00 suggest possible one-time items, as per the reported financials.

Short-sellers would likely focus on the extreme earnings surprise and the lack of forward guidance, which may indicate management's caution about sustaining this momentum. The net income of $112.2B is more than double the operating income of $40.8B, implying that non-operating gains are masking the true operating performance. If these gains are non-recurring, future quarters could see a sharp normalization in EPS, potentially disappointing investors who extrapolate the current run-rate. Additionally, the acceleration in Cloud growth to 82% may be capacity-constrained, and any slowdown could trigger a re-rating.

GOOG — Frequently Asked Questions

Quick answers to the most common questions about buying GOOG stock.

What was Alphabet Inc.'s (GOOG) revenue in 2025?

For fiscal year 2025, Alphabet Inc. (GOOG) reported total revenue of $402.96B. This represents a 91585.0% increase compared to $439.5M in 2002.

Is Alphabet Inc. (GOOG) profitable?

Alphabet Inc. (GOOG) is profitable, generating $132.17B in net income for the fiscal year ending 2025 with a net profit margin of 32.8%.

What is Alphabet Inc.'s operating profit margin?

Alphabet Inc. (GOOG) reported an operating income of $129.17B, resulting in an operating profit margin of 32.1%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Alphabet Inc.'s gross profit and gross margin?

Alphabet Inc. (GOOG) generated $240.43B in gross profit for the year, representing a gross profit margin of 59.7%. This demonstrates the company's core pricing power and production efficiency.