Alphabet Inc. reported a 12% year-over-year increase in revenue for the fourth quarter of 2024, reaching $96.5 billion, compared to 13% in the same period last year. Google’s mother company credited strong growth, albeit slower, across its business segments, particularly in Google Services and Google Cloud.
Google Services, which includes Search, YouTube, and other advertising platforms, posted $84.1 billion in revenue, showing a 10% increase from the same period last year. Google Cloud saw a 30% rise in revenue to $12 billion, driven by demand for Google Cloud Platform (GCP) products, AI infrastructure, and generative AI solutions.
“Q4 was a strong quarter driven by our leadership in AI and momentum across the business,” Sundar Pichai, CEO of Alphabet and Google, said in the company disclosure. “We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies,” said Pichai.
Pichai also pointed to advancements in Google Search, such as AI Overviews and Circle to Search, as key factors in increasing user engagement. He noted that YouTube continues to lead in streaming watch time and podcasts.
Artificial intelligence
“Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts,” he said
Alphabet’s operating income rose 31% to $31 billion, and its operating margin increased by five percentage points to 32%. Net income climbed 28% to $26.5 billion, while diluted earnings per share (EPS) grew 31% to $2.15.
The company remains focused on investment, with plans to allocate approximately $75 billion in capital expenditures in 2025.
“Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses,” Pichai said.
Google Services, Alphabet’s largest segment, contributed the most to operating income, generating $32.8 billion, up from $26.7 billion the previous year. Google Cloud’s operating income also improved significantly, rising from $864 million to $2.1 billion.
The company also reported a loss in its “Other Bets” category, which includes experimental projects outside its core businesses. Losses widened from $863 million in Q4 2023 to $1.17 billion in Q4 2024.
Alphabet expects continued growth, particularly in AI and cloud computing. The company is integrating its Gemini AI models into more products and recently moved its Gemini app team to Google DeepMind.
Thumbnail image by Googleplex HQ (By The Pancake of Heaven!)