Alphabet Inc. stock research
FY2025 Q4
Alphabet (GOOGL) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin improved compared to both the prior quarter and the same quarter one year earlier, reflecting a higher proportion of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin improved compared to both the prior quarter and the same quarter one year earlier, reflecting a higher proportion of revenue retained as gross profit.
- The strongest observable margin driver is the increase in gross margin relative to both the prior quarter and the year-ago quarter, with the current period's margin being higher than each of those prior periods.
- Sequentially, gross margin was slightly higher than the prior quarter. Year over year, gross margin improved more notably compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.8%
Gross profit
$68.1B
Revenue
$113.8B
Cost of revenue
$45.8B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $90.2B | $53.9B | $36.4B | 59.7% |
| Jun 30, 2025 | $96.4B | $57.4B | $39.0B | 59.5% |
| Sep 30, 2025 | $102.3B | $61.0B | $41.4B | 59.6% |
| Dec 31, 2025 | $113.8B | $68.1B | $45.8B | 59.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.2 pts
Year-over-year change
Dec 31, 2024
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross margin relative to both the prior quarter and the year-ago quarter, with the current period's margin being higher than each of those prior periods.
Sequentially, gross margin was slightly higher than the prior quarter. Year over year, gross margin improved more notably compared to the same quarter one year earlier.
Monitor the trend in cost of revenue relative to revenue, as changes in this ratio directly affect future gross margin.