Alphabet Inc. (GOOGL) Income Statement

24Y historyFree accessUpdated daily

Revenue growth accelerated to 24.2% YoY in Q2 2026, with gross margin expanding to 61.6% and operating margin to 34.0%, though net margin of 93.7% was inflated by a one-time gain.

Annual statement

GOOGL Income Statement

Alphabet Inc. (GOOGL) 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

Regulatory overhang on Search

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

AI-Driven Revenue Acceleration

Revenue growth accelerated to 24.2% YoY in Q2 2026, up from 13.8% a year earlier, driven by Google Cloud's 82% surge, per recent financial disclosures.

The sequential acceleration from 13.8% in Q2 2025 to 24.2% in Q2 2026 indicates that AI monetization is scaling faster than the core advertising business. Google Cloud's 82% growth, as highlighted in CEO commentary, suggests the segment is becoming a primary growth engine, potentially offsetting any deceleration in Search. Investors should monitor whether this pace is sustainable given the lack of forward guidance.

Gross Margin Expansion Amid AI Costs

Gross margin improved to 61.6% in Q2 2026 from 59.5% a year earlier, despite rising AI compute costs, as reported in the income statement.

The 210 basis point YoY expansion in gross margin suggests that Alphabet is achieving operating leverage in its infrastructure, possibly due to custom TPU efficiency. However, the sequential decline from 62.4% in Q1 2026 indicates that AI-related costs may be pressuring margins at the margin. The structural constraint from TAC and content acquisition costs remains, but the current trend suggests pricing power in cloud and ads.

Operating Leverage From Cloud Scaling

Operating margin expanded to 34.0% in Q2 2026 from 32.4% a year earlier, with operating income growing 30% YoY, per the latest quarterly data.

Operating income growth outpaced revenue growth (30% vs 24%), indicating that SG&A and R&D are not scaling proportionally. The 34.0% operating margin is near the highest in the ten-quarter period, suggesting that Google Cloud's transition to profitability is enhancing overall leverage. However, the sequential dip from 36.1% in Q1 2026 warrants attention, as it may reflect increased investment in AI infrastructure.

Net Income Boosted by One-Time Gains

Net margin surged to 93.7% in Q2 2026, driven by a $112.2B net income that includes a one-time gain, as per the income statement.

The net income of $112.2B is nearly triple the operating income of $40.8B, implying a significant non-operating gain, likely from equity investments or tax benefits. This inflates EPS to $9.11, which may not be recurring. Excluding this item, normalized EPS would be closer to the $3.0 estimate, suggesting the market should focus on operating earnings quality.

R&D and SG&A Discipline

R&D as a percentage of revenue declined to 15.2% in Q2 2026 from 16.0% a year earlier, while SG&A rose slightly, based on reported figures.

The modest decline in R&D intensity despite heavy AI investment suggests efficiency in R&D spending, possibly due to prior infrastructure build-out. SG&A increased to 12.4% of revenue from 12.8% a year ago, indicating cost discipline. However, the absolute R&D spend of $18.2B remains high, and investors should watch for any acceleration in spending to support AI initiatives.

Sustainability of AI-Driven Growth Questioned

The 24% revenue growth and 82% cloud acceleration may be unsustainable, as the lack of guidance and regulatory risks cloud the outlook, per recent disclosures.

Short-sellers could argue that the exceptional Q2 growth is partly due to one-time factors, such as the non-operating gain inflating EPS, and that AI monetization may face diminishing returns. The absence of forward guidance suggests management's caution, and regulatory actions against Search default agreements could disrupt the core advertising model. Additionally, the sequential margin decline from Q1 to Q2 hints at rising AI compute costs that could compress margins if growth slows.

GOOGL — Frequently Asked Questions

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

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

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

Is Alphabet Inc. (GOOGL) profitable?

Alphabet Inc. (GOOGL) 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. (GOOGL) 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. (GOOGL) 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.