Google Search Revenue Hits $63B As AI Mode Ads Redraw The Playbook

Google Search Hits $63B, Details AI Mode Ad Tests

Alphabet reported Q4 2025 revenue of $113.8 billion, according to its investor materials. This marked the company's first year with more than $400 billion in annual revenue.

Google Search and other advertising revenue reached $63.07 billion in Q4 2025, up from $54.03 billion a year earlier. That segment grew 17 percent year over year, compared with 12 percent growth in Q4 2024.

Search growth accelerated through 2025, rising 10 percent in Q1 and 12 percent in Q2, then reaching 15 percent in Q3 and 17 percent in Q4.

• Google Search and other advertising revenue reached $63.07 billion in Q4 2025, rising 17 percent year over year.
• CEO Sundar Pichai said Search usage in Q4 2025 was higher than in any previous quarter.
• Pichai said daily AI Mode queries per user in the United States doubled since launch.
• He said queries in AI Mode are three times longer than traditional searches, with many leading to follow-up questions.
• YouTube ad revenue reached $11.38 billion in Q4 2025, increasing 9 percent year over year. That total was below the $11.84 billion analysts expected, according to CNBC.

Background Context on AI Mode, Direct Offers, and Other Segments

Google previously reported 12 percent Search growth in Q4 2024 and 10 percent in Q1 2025. By Q1 2025, AI Overviews reached 1.5 billion monthly users, according to earlier company disclosures.

Chief Business Officer Philipp Schindler said Google is in the early stages of experimenting with AI Mode monetization. The company is testing ads below the AI response, with additional experiments underway.

Schindler also described a new Google Ads pilot called Direct Offers, which he said will:

"allow advertisers to show exclusive offers for shoppers who are ready to buy"

He said these offers will appear directly in AI Mode and that Google plans to launch checkout directly within AI Mode from select merchants.

According to Schindler, longer AI Mode queries are creating new ad inventory. He said Gemini's improved understanding of intent is increasing ad delivery on longer, more complex searches.

On YouTube, Schindler said the main factor lowering year over year growth was lapping strong U.S. election spending in Q4 2024. He added that when users switch to YouTube Premium, subscription revenue rises while ad revenue declines.

Google Cloud revenue rose 48 percent to $17.66 billion in Q4 2025. Alphabet said it plans capital expenditures of $175 billion to $185 billion in 2026, nearly double 2025 levels.

Addressing questions about Search cannibalization, Pichai said Google has not seen evidence of it and that the changes are:

"expanding the type of queries people do with Google overall"

Source Citations

• Alphabet Inc. Q4 2025 earnings materials and investor information are available on the company's investor relations site.
• Statements from Sundar Pichai and Philipp Schindler are drawn from Alphabet's Q4 2025 earnings call, posted on the same site.