Alphabet reported a 17% rise in fourth-quarter revenue, ignoring currency moves, to $113.8bn ($111.4bn expected).
The core advertising business, which includes Google Search and YouTube, saw revenue rise by 14% to $95.9bn. Google Cloud revenue increased by 48% (36% expected) to $17.7bn, with a cloud backlog of $240bn.
Operating income rose 16% to $35.9bn, missing expectations of $36.9bn due to a $2.1bn one-off charge related employee compensation at Waymo.
Free cash flow dipped slightly from $24.8bn to $24.5bn, as increased cash generation was more than offset by higher capital expenditure. Net cash, including leases, was $67.6bn at year-end.
Capital expenditure in 2026 is set to rise to between $175-185bn ($121bn expected).
The shares fell 2.0% in pre-market trading.
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Alphabet key facts
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