The Google logo is displayed on a building at Google headquarters on February 04, 2026 in Mountain View, California. (Photo: AFP)

Google parent Alphabet said Wednesday that it brought in $113.8 billion in the final three months of 2025, powered by its core search business and cloud computing, as it ramped spending on artificial intelligence.

The tech giant said revenue jumped 18 percent year-on-year in the quarter, and overall annual revenue topped $400 billion for the first time at the company founded by Larry Page and Sergey Brin in 1998.

"We're seeing our AI investments and infrastructure drive revenue and growth across the board," said Alphabet chief executive Sundar Pichai.

Alphabet reported profit of $34.5 billion in the recently ended quarter as revenue from cloud computing soared 48 percent to $17.7 billion.

The strong earnings came as Alphabet ramps up capital spending to meet surging demand for AI infrastructure.

The company expects capital expenditures between $175 billion and $185 billion in 2026, double its 2025 spending, to meet customer demand for AI products.

Google's core search and advertising business remained the primary revenue driver, generating $82.3 billion, up from $72.5 billion a year earlier.

YouTube advertising revenues also grew strongly to $11.4 billion from $10.5 billion.

Google said it now counts over 325 million paid subscriptions across consumer services, including Google One and YouTube Premium.

The cloud division, which competes with Amazon Web Services and Microsoft Azure, has become a key growth engine for Alphabet.

Google's Gemini AI continued to grow quickly, ending the year with 750 million monthly users.

Despite the robust growth, Alphabet's experimental "Other Bets" division, which includes autonomous vehicle unit Waymo, posted a loss of $3.6 billion on revenues of just $370 million.

Google's shares gained slightly  more than 2 percent in after-market trades.