Alphabet GOOGL · USD

Information about Segments and Geographic Areas We report our segment results as Google Services, Google Cloud, and Other Bets:•Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket, as well as Google One; the sale of apps and in-app purchases; and devices.•Google Cloud includes infrastructure and platform services, applications, and other services for enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services.•Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of autonomous transportation services and internet services.Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering activities, and devices, as well as certain operating expenses are directly attributable to our segments. Due to the integrated nature of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are managed centrally at a consolidated level. These costs, including the associated depreciation, are allocated to operating segments as a service cost generally based on usage, headcount, or revenue.Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include: •certain AI-focused shared research and development activities, including employee compensation expenses and technical infrastructure usage costs associated with the development of our general AI models; •corporate initiatives such as our philanthropic activities; and•corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with employee severance and office space reductions are also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments.Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, Sundar Pichai.

Revenues Disaggregated RevenuesThe following table presents revenues disaggregated by type (in millions):Year Ended December 31,202320242025Google Search & other$175,033 $198,084 $224,532 YouTube ads31,510 36,147 40,367 Google Network31,312 30,359 29,792 Google advertising237,855 264,590 294,691 Google subscriptions, platforms, and devices34,688 40,340 48,030 Google Services total272,543 304,930 342,721 Google Cloud33,088 43,229 58,705 Other Bets1,527 1,648 1,537 Hedging gains (losses)236 211 (127)Total revenues$307,394 $350,018 $402,836 No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2023, 2024, or 2025. The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions):Year Ended December 31, 202320242025United States$146,286 47 %$170,447 49 %$194,229 48 %EMEA(1)91,038 30 102,127 29 117,152 29 APAC(1)51,514 17 56,815 16 67,680 17 Other Americas(1)18,320 6 20,418 6 23,902 6 Hedging gains (losses)236 0 211 0 (127)0 Total revenues$307,394 100 %$350,018 100 %$402,836 100 %(1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other Americas").Revenue BacklogAs of December 31, 2025, we had $242.8 billion of remaining performance obligations (“revenue backlog"), primarily related to Google Cloud. Revenue backlog represents commitments in customer contracts that have not yet been recognized as revenue. We expect to recognize just over 50% of the revenue backlog as revenues over the next 24 months with the remainder to be recognized thereafter. The estimated revenue backlog and timing of revenue recognition for these commitments is largely driven by contract duration, our ability to deliver in accordance with relevant contract terms, and when our customers utilize services. Revenue backlog includes related deferred revenue currently recorded as well as amounts that will be invoiced in future periods, and excludes contracts with an original expected term of one year or less and cancellable contracts.Deferred RevenuesWe record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Deferred revenues primarily relate to Google Cloud and Google subscriptions, platforms, and devices. Total deferred revenue as of December 31, 2024 was $6.0 billion, of which $4.

Commitments and Contingencies CommitmentsWe have certain content licensing agreements with future fixed or minimum guaranteed commitments of $7.7 billion as of December 31, 2025, of which the majority is paid quarterly through the first quarter of 2030.Financial GuaranteesWe provide financial guarantees to certain counterparties, in the form of backstop agreements with varying terms through August 2026. These backstop agreements support counterparty procurement of long-lead time equipment for our future power purchase agreements. As of December 31, 2025, our maximum potential amount of future payments under these guarantees was $5.7 billion, upon which we may receive certain assets. The fair value of these obligations was not material. IndemnificationsIn the normal course of business, including to facilitate transactions in our services and products and corporate activities, we indemnify certain parties, including advertisers, Google Network partners, distribution partners, customers of Google Cloud offerings, lessors, and service providers with respect to certain matters. We have agreed to defend and/or indemnify certain parties against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our agents.It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows, or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period.As of December 31, 2025, we did not have any material indemnification claims that were probable or reasonably possible.Legal MattersWe record a liability when we believe that it is probable that a loss has been incurred, and the amount can be reasonably estimated.

Debt Short-Term DebtWe have a commercial paper program of up to $25.0 billion, which is used for general corporate purposes. We had $2.3 billion of commercial paper outstanding with a weighted-average effective interest rate of 4.4% as of December 31, 2024 and no commercial paper outstanding as of December 31, 2025. The fair value of the commercial paper approximated its carrying value as of December 31, 2024.Our short-term debt balance also includes the current portion of certain long-term debt.Long-Term DebtDuring 2025, we issued $22.5 billion of US dollar-denominated senior unsecured notes and €13.25 billion of euro-denominated senior unsecured notes for general corporate purposes.In May 2025, we issued $5.0 billion of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 4.89%, and a weighted-average maturity of approximately 24 years. Additionally, in May 2025, we issued €6.75 billion of euro-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 3.31%, and a weighted-average maturity of approximately 14 years. In November 2025, we issued $500 million of US dollar-denominated floating-rate senior unsecured notes and $17.0 billion of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 4.92% and a weighted-average maturity of approximately 20 years. Additionally in November 2025, we issued €6.5 billion of euro-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 3.44% and a weighted-average maturity of approximately 16 years.Total outstanding long-term debt is summarized below (in millions, except percentages):Effective Interest RateAs of December 31,MaturityCoupon Rate20242025Debt2016 US dollar notes20262.00%2.23%$2,000 $2,000 2020 US dollar notes2027 - 20600.80% - 2.25%0.93% - 2.33%10,000 9,000 2025 US dollar notes(1)2028 - 20753.88% - 5.70%4.00% - 5.79%0 22,500 2025 Euro notes(2)2028 - 20642.38% - 4.38%2.57% - 4.51%0 15,585 Total face value of long-term debt12,000 49,085 Unamortized discount and debt issuance costs(2)(118)(542)Less: current portion of long-term notes(3)(999)(1,996) Total long-term debt$10,883 $46,547 (1)Includes $500 million of floating-rate notes due in 2028. Interest is calculated using the compounded Secured Overnight Financing Rate (SOFR) plus 0.52%, reset quarterly.

Income Taxes Income from continuing operations before income taxes consisted of the following (in millions):Year Ended December 31, 202320242025Domestic operations$73,600 $108,076 $143,591 Foreign operations12,117 11,739 15,235 Total$85,717 $119,815 $158,826 Provision for income taxes consisted of the following (in millions):Year Ended December 31, 202320242025Current:Federal and state$15,716 $21,101 $13,378 Foreign3,935 3,852 5,028 Total19,651 24,953 18,406 Deferred:Federal and state(7,482)(5,350)8,243 Foreign(247)94 7 Total(7,729)(5,256)8,250 Provision for income taxes$11,922 $19,697 $26,656 The reconciliation of federal statutory income tax rate to our effective income tax rate was as follows:Year Ended December 31, 202320242025US federal statutory rate18,001 21.0 %25,161 21.0 %33,353 21.0 %State and local income taxes, net of federal income tax effect(1)823 1.0 %1,199 1.0 %1,606 1.0 %Foreign tax effects:Brazil:Withholding taxes1,064 1.2 %1,041 0.9 %1,384 0.9 %Other62 0.1 %12 0.0 %23 0.0 %Other foreign jurisdictions(74)(0.1)%353 0.3 %396 0.2 %Effect of change in tax laws or rates enacted in the current period(829)(1.0)%0 0.0 %0 0.0 %Effect of cross-border tax laws:Foreign-derived intangible income deduction(3,980)(4.6)%(4,568)(3.8)%(3,931)(2.5)%Other215 0.2 %321 0.3 %295 0.2 %Tax credits:Federal research credit(1,575)(1.8)%(1,792)(1.5)%(2,088)(1.3)%Foreign tax credits(1,396)(1.6)%(1,373)(1.1)%(1,684)(1.1)%Other(498)(0.6)%(198)(0.2)%(98)(0.1)%Changes in valuation allowances513 0.6 %603 0.5 %1,170 0.7 %Nontaxable or nondeductible items:Stock-based compensation expense(602)(0.7)%(1,743)(1.5)%(2,601)(1.6)%Other169 0.2 %203 0.2 %955 0.6 %Changes in unrecognized tax benefits432 0.5 %689 0.6 %(1,123)(0.7)%Other adjustments(403)(0.5)%(211)(0.2)%(1,002)(0.6)%Total$11,922 13.9 %$19,697 16.4 %$26,656 16.8 %(1) The tax effect in this category primarily reflects state and local taxes in New York state, New York city, Pennsylvania, Minnesota, Illinois, New Jersey and Wisconsin.In 2023, the IRS issued a rule change allowing taxpayers to temporarily apply the regulations in effect prior to 2022 related to US federal foreign tax credits as well as a separate rule change with guidance on the capitalization and amortization of research and development expenses. A cumulative one-time adjustment for these tax rule changes was recorded in 2023.

Leases We have entered into operating and finance lease agreements primarily for data centers, land, and offices throughout the world with varying lease terms.Components of lease costs were as follows (in millions):Year Ended December 31,202320242025Operating lease cost$3,362 $3,304 $3,345 Finance lease cost:Amortization of lease assets469 413 553 Interest on lease liabilities35 31 65 Finance lease cost504 444 618 Variable lease cost1,182 1,425 1,739 Total lease cost$5,048 $5,173 $5,702 Supplemental information related to leases was as follows (in millions):December 31,20242025Weighted-average remaining lease term:Operating leases7.8 years7.6 yearsFinance leases10.4 years8.3 yearsWeighted-average discount rate:Operating leases3.4 %3.6 %Finance leases2.8 %3.1 %December 31,20242025Operating leases:Operating lease assets$13,588 $15,221 Accrued expenses and other liabilities$2,887 $3,209 Operating lease liabilities11,691 12,744 Total operating lease liabilities$14,578 $15,954 Finance leases:Property and equipment, at cost$4,622 $6,822 Accumulated depreciation(2,037)(2,025)Property and equipment, net$2,585 $4,797 Accrued expenses and other liabilities$235 $441 Other long-term liabilities1,442 2,059 Total finance lease liabilities$1,677 $2,500 Year Ended December 31,202320242025Cash payments for lease liabilities:Operating cash flows used for operating leases$3,173 $3,425 $3,370 Operating cash flows used for finance leases$35 $31 $65 Financing cash flows used for finance leases(1)$705 $405 $1,988 Assets obtained in exchange for lease liabilities:Operating leases$2,877 $2,510 $4,070 Finance leases$564 $313 $1,606 (1)Financing cash flows used for financing leases are included within financing activities as repayments of debt. The year ended December 31, 2025 includes $1.1 billion of prepayments for finance leases not yet commenced.Future lease payments as of December 31, 2025 were as follows (in millions):Operating LeasesFinance Leases2026$3,275 $491 20273,082 345 20282,510 335 20292,061 314 20301,669 241 Thereafter5,654 1,143 Total undiscounted lease payments18,251 2,869 Less: imputed interest(2,297)(369)Total lease liability balance$15,954 $2,500 As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively, that are not yet recorded.

AcquisitionsPending AcquisitionsIn March 2025, we entered into a definitive agreement to acquire Wiz, a leading cloud security platform, for $32.0 billion, subject to closing adjustments, in an all-cash transaction. The acquisition of Wiz is expected to close in 2026, subject to customary closing conditions, including the receipt of regulatory approvals. Upon the close of the acquisition, Wiz will be part of the Google Cloud segment.In December 2025, we entered into a definitive agreement to acquire Intersect, which provides data center and energy infrastructure solutions, for $4.8 billion in cash, plus the assumption of debt. The acquisition of Intersect is expected to close in the first half of 2026, subject to customary closing conditions.

We maintain a comprehensive process for identifying, assessing, and managing material risks from cybersecurity threats as part of our broader risk management system and processes. For example, some risks include our software supply chain and other third-party dependencies, vulnerabilities in our products and services, theft of our intellectual property, and attempts to compromise our infrastructure. We obtain input, as appropriate, for our cybersecurity risk management program on the security industry and threat trends from multiple external experts and internal threat intelligence teams. Teams of dedicated privacy, safety, and security professionals oversee cybersecurity risk management and mitigation, incident prevention, detection, and remediation. These teams comprise professionals with deep cybersecurity expertise across multiple industries and are led by our Vice President of Privacy, Safety, and Security, who has more than 20 years of experience, including roles in technology infrastructure for two other large public companies. Our executive leadership team, along with input from the above teams, are responsible for our overall enterprise risk management system and processes and regularly consider cybersecurity risks in the context of other material risks to the company.As part of our cybersecurity risk management process, our incident management teams track and log privacy and security incidents across Alphabet, our vendors, and other third-party service providers to remediate and resolve any such incidents. Significant incidents are reviewed regularly by a cross-functional working group to determine whether further escalation is appropriate. Any incident assessed as potentially being or potentially becoming material is promptly escalated for further assessment, and then reported to designated members of our senior management. We consult with outside counsel as appropriate, including on materiality analysis and disclosure matters, and our senior management makes the final materiality determinations and disclosure and other compliance decisions. Our management apprises Alphabet’s independent public accounting firm of relevant matters and developments.