Stock Analysis on Net
Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

Common-Size Income Statement 
Quarterly Data

Alphabet Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenues -40.42 -40.49 -40.30 -42.10 -41.32 -41.90 -41.86 -43.53 -43.33 -42.78 -43.86 -46.47 -45.10 -43.20 -43.52 -43.79 -42.42 -42.38 -43.57 -45.84 -45.73 -48.45 -46.12
Gross profit 59.58% 59.51% 59.70% 57.90% 58.68% 58.10% 58.14% 56.47% 56.67% 57.22% 56.14% 53.53% 54.90% 56.80% 56.48% 56.21% 57.58% 57.62% 56.43% 54.16% 54.27% 51.55% 53.88%
Research and development -14.80 -14.32 -15.02 -13.60 -14.10 -14.00 -14.78 -14.03 -14.68 -14.19 -16.43 -13.50 -14.87 -14.12 -13.41 -11.56 -11.82 -12.40 -13.53 -12.34 -14.85 -17.95 -16.57
Sales and marketing -7.04 -7.36 -6.84 -7.63 -8.19 -8.01 -7.98 -8.94 -8.98 -9.09 -9.36 -9.45 -10.03 -9.51 -8.56 -10.09 -8.47 -8.53 -8.16 -9.34 -9.16 -10.19 -10.93
General and administrative -7.22 -5.40 -3.92 -4.57 -4.08 -3.73 -3.76 -6.03 -5.19 -4.67 -5.39 -6.70 -5.21 -5.25 -4.96 -5.50 -5.00 -5.40 -5.01 -4.98 -5.97 -6.75 -7.00
Income from operations 30.51% 32.43% 33.92% 32.11% 32.31% 32.36% 31.63% 27.46% 27.83% 29.27% 24.95% 23.88% 24.80% 27.92% 29.55% 29.05% 32.30% 31.29% 29.72% 27.51% 24.28% 16.67% 19.38%
Other income (expense), net 12.47 2.76 12.39 1.32 3.61 0.15 3.53 0.83 -0.19 0.09 1.13 -1.33 -1.31 -0.63 -1.71 3.34 3.12 4.24 8.76 5.34 4.65 4.95 -0.53
Income before income taxes 42.98% 35.19% 46.31% 33.42% 35.92% 32.51% 35.16% 28.28% 27.64% 29.36% 26.09% 22.55% 23.49% 27.29% 27.84% 32.40% 35.42% 35.53% 38.48% 32.85% 28.93% 21.61% 18.85%
Provision for income taxes -8.80 -5.95 -8.03 -5.92 -6.12 -4.64 -5.78 -4.32 -1.97 -4.74 -4.52 -4.63 -3.36 -4.32 -3.67 -4.99 -6.34 -5.59 -6.06 -6.08 -4.57 -3.44 -2.24
Net income 34.18% 29.24% 38.28% 27.51% 29.80% 27.87% 29.38% 23.97% 25.67% 24.62% 21.57% 17.92% 20.13% 22.96% 24.17% 27.40% 29.08% 29.94% 32.41% 26.76% 24.36% 18.17% 16.61%

Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

Gross Profit Trends
The gross profit margin has generally remained strong across the periods, fluctuating mostly between approximately 53.5% and nearly 60% of revenues. There is a visible improvement over time, with margins increasing from about 53.88% in early 2020 to a peak around 59.7% near the end of the observed period. This indicates improved cost management or pricing power, despite some interim fluctuations.
Cost of Revenues
The cost of revenues as a percentage of total revenues has shown a slight overall decrease, moving from around 46.12% in early 2020 down to approximately 40.3%-40.5% in the later quarters. This reduction aligns with the rising gross profit margins and suggests enhanced operational efficiency or favorable changes in input costs.
Research and Development (R&D)
R&D expenses exhibit some volatility but generally remain between approximately 11.5% and 17% of revenues, with earlier quarters showing a modest declining trend up to late 2021, followed by some increase again through 2023-2025. This pattern may reflect ongoing investment in innovation, with occasional shifts in spending intensity relative to revenue levels.
Sales and Marketing Expenses
Sales and marketing costs fluctuate within a narrower range, mostly between 6.8% and 10.9% of revenues, with a general downward trend visible over the full period. The lowest values occur towards the latter part of the timeline, suggesting efforts to optimize marketing spending or increased efficiencies in sales channels.
General and Administrative Expenses
General and administrative expenses as a percentage of revenues generally trend downward from around 7% at the start to lows near 3.7%-4% at several points, though a few spikes occur later in the timeline, particularly in the last recorded quarter. This inconsistent pattern may indicate variability in administrative costs or exceptional items impacting these periods.
Operating Income
Income from operations consistently represents a solid portion of revenues, rising from about 19.38% in early 2020 to above 32% in recent quarters. Peaks are observed near the end of 2024 and into 2025, reflecting sustained operational profitability improvements driving earnings before other factors.
Other Income (Expense), Net
This item shows considerable variability, ranging from small negative values to positive spikes exceeding 12% of revenues in some quarters. The fluctuations suggest irregular gains or losses outside core operations that can substantially influence overall profitability in certain periods.
Income Before Income Taxes
Pre-tax income aligns closely with operating income plus other income impacts, with generally strong margins mostly staying above 20% and peaking around 46% in mid-2025. This indicates very profitable periods, likely buoyed by favorable non-operating items alongside solid operating results.
Provision for Income Taxes
The tax provision as a percentage of revenues fluctuates mostly between approximately 2% and 8.8%, without a clear long-term trend downward or upward, implying varying effective tax rates or changes in taxable income composition over time.
Net Income
Net income margins follow a broadly upward trajectory from roughly 16.6% in early 2020 to peak values near 38% mid-2025. Despite intermediate dips, the overall increase in net income percentage suggests the company successfully enhanced profitability, benefitting from operational efficiency, controlled expenses, and favorable other income impacts.