Income Statement
Quarterly Data
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Alphabet Inc., consolidated income statement (quarterly data)
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial performance presented demonstrates a generally positive trajectory in revenue and profitability over the observed period, though with some fluctuations. Revenues exhibit consistent growth from March 2021 through December 2025, with a notable acceleration in the latter half of the period. Cost of revenues has increased in tandem with revenue, but at a slower rate, resulting in expanding gross profit margins for much of the period. However, increases in operating expenses, particularly in research and development, sales and marketing, and general and administrative expenses, have impacted overall income from operations.
- Revenue Growth
- Revenue increased from US$55.314 billion in March 2021 to US$113.828 billion in December 2025. The most significant growth occurred between December 2023 and December 2025, indicating a potential acceleration in the company’s market position or increased demand for its products and services. A dip is observed in revenue between March 2022 and September 2022, followed by a recovery.
- Gross Profit Analysis
- Gross profit mirrored the revenue trend, rising from US$31.211 billion in March 2021 to US$68.062 billion in December 2025. The gross profit margin generally improved from approximately 56.4% in March 2021 to around 59.8% in December 2025, suggesting improved efficiency in production or pricing strategies. However, there were slight declines in the gross profit margin during certain quarters, coinciding with increases in cost of revenues.
- Operating Expense Trends
- Research and development expenses consistently increased throughout the period, reaching US$18.572 billion in December 2025. This suggests a continued commitment to innovation and product development. Sales and marketing expenses also increased, though at a more moderate pace, peaking at US$8.215 billion in December 2025. General and administrative expenses showed a similar upward trend, reaching US$5.341 billion in December 2025. The combined effect of these increasing operating expenses moderated the growth in income from operations.
- Net Income Performance
- Net income generally followed the trend of income from operations, increasing from US$17.930 billion in March 2021 to US$34.455 billion in December 2025. However, fluctuations in other income (expense), net, and provision for income taxes impacted the overall net income figures in specific quarters. Notably, a significant increase in other income is observed in March 2025, contributing to a substantial rise in net income for that period.
- Tax Rate Variability
- The effective tax rate varied considerably across the observed period. The provision for income taxes as a percentage of income before income taxes ranged from approximately 15.7% to 29.2%. This variability could be attributed to changes in tax laws, geographic distribution of income, or utilization of tax credits.
In summary, the company demonstrated strong revenue growth and expanding gross profit margins. While operating expenses increased, the overall trend in net income was positive. The fluctuations in other income and the tax rate warrant further investigation to understand their underlying drivers and potential impact on future financial performance.