Google’s parent company, Alphabet, reported strong financial results for the fourth quarter of its 2025 fiscal year during the earnings call held on February 4, 2026. The company exceeded market expectations for revenue and earnings per share. Leadership highlighted growth in core areas such as Search, Cloud and artificial intelligence. AI products, especially the Gemini model, played a central role in results and future strategy.
Revenue growth was broad based. Search and advertising continued to show healthy gains, while Google Cloud reported one of its fastest growth rates in years. Annual revenues crossed $400 billion for the first time, a milestone for Alphabet’s business scale.
Executives also addressed the newly disclosed partnership between Google and Apple focused on Siri. This agreement has gained attention because it brings together two rival tech giants on AI. Alphabet’s comments on the call offered context about this deal and its implications for both companies.
Alphabet Earnings
- Quarterly revenue was about $113.8 billion, up roughly 15 to 18 percent year over year.
- Net income climbed around 30 percent to about $34.5 billion.
- Cloud revenue grew about 48 percent and now drives a large backlog of business.
- YouTube, Search and other services added to top line strength.
- Capital spending guidance for 2026 is set much higher than analysts expected, reflecting investments in AI infrastructure.
Revenue and earnings beat analyst estimates, reinforcing investor confidence in Alphabet’s position, particularly in areas tied to artificial intelligence and cloud computing.
The Siri and Google Gemini Deal
One of the more unusual developments outlined during the earnings period is Alphabet’s relationship with Apple around Siri’s next generation AI. Apple has confirmed it will upgrade Siri using Google’s Gemini AI models, a significant shift from its past practices of relying mostly on internal technology.
According to Mark Gurman, Apple plans to run a custom Gemini model with about 1.2 trillion parameters to boost Siri’s intelligence later this year. This model is many times larger than the AI models Apple previously used.
Industry observers believe Apple will pay Google around $1 billion per year for access to this custom version of Gemini. The arrangement allows Apple to keep user data protected on its own servers while outsourcing the heavy AI tasks to Google’s technology.
During the earnings call, Alphabet leaders confirmed the collaboration by discussing how Gemini will support AI functions in Apple’s ecosystem. The partnership signals a new phase where technology competitors sometimes work together on foundational AI tools.
Apple Q1 Earnings
Apple has also reported its Q1 2026 earnings recently. Investors looked for details on iPhone sales, services and how new AI features will influence growth. Part of the discussion in Apple’s earnings centered on how Siri’s upgrade with Gemini AI fits into its strategy and future product plans.
- Google (Q4 2025)
- Revenue: about $113.8 billion.
- Growing cloud revenue at nearly 50 percent.
- Annual revenue above $400 billion.
- Apple (Q1 2026)
- Focused on iPhone and services performance.
- AI initiatives highlighted, including Siri partner strategy.
Both companies are driving AI into their core products, but their approaches differ. Google builds large models and integrates them across services. Apple blends internal development with partnerships, using external AI technology where needed while maintaining control over privacy and hardware.
Outlook and Market Implications
Investors and analysts continue to watch how AI spending will affect profits and growth. Alphabet’s plan to boost capital expenditures to support data centers and chips shows confidence in long term AI demand.
The Siri and Gemini deal also sets a precedent in tech. Apple’s choice to license one of the strongest AI models available suggests a shift in how large tech firms cooperate. The results of this partnership will become clearer as Apple rolls out its revamped Siri in 2026.
In simple terms, the earnings call confirmed that Alphabet remains financially strong, is growing in cloud and AI, and is now collaborating with a major competitor on next generation AI tools built on Google’s Gemini model.
