Latest FY 2025 earnings snapshot

Alphabet (GOOGL) closed FY 2025 with Q4 revenue of US$113.8b and basic EPS of US$2.85, setting the tone for a year where trailing twelve month revenue reached US$402.8b and EPS came in at US$10.91 alongside earnings growth of 32% over the past year. Over recent periods, the company has seen quarterly revenue move from US$96.5b in Q4 2024 to US$113.8b in Q4 2025, while quarterly basic EPS shifted from US$2.17 to US$2.85, supported by an improvement in net profit margin to 32.8% from 28.6%. For investors, these results frame a story of higher profitability and richer margins that now need to be weighed against the quality of earnings and the outlook for sustaining this level of performance.

See our full analysis for Alphabet.

With the headline numbers on the table, the next step is to see how this profitability and margin profile lines up with the most widely held narratives about Alphabet, highlighting where the story is reinforced and where expectations might need a reset.

Margin strength meets multi year growth

• Net profit margin on a trailing twelve month basis is 32.8%, alongside earnings growth of 32% over the past year and an average of 17.3% per year over the past five years.
• What stands out for the bullish view is how this margin profile and multi year earnings growth rate line up, with:
  • Trailing twelve month net income at about US$132.2b on revenue of about US$402.8b, which supports the idea of a large, profitable franchise rather than a one off spike.
  • Five year earnings growth of 17.3% per year sitting alongside the latest 32% yearly increase, which is often cited in bullish arguments that Alphabet has been able to grow profit meaningfully over time while keeping margins high.

Forecast growth vs market expectations

• Earnings are forecast to grow about 11.5% per year and revenue about 12% per year, compared with the cited US market revenue growth of about 10.2% and earnings growth of about 15.6%.
• For a more cautious or bearish take, the tension is that these forecast growth rates sit between strong history and a competitive broader market, with:
  • Forecast earnings growth of about 11.5% per year below the 17.3% five year historical earnings growth, which critics highlight as a step down from the past pace even though it still points to ongoing expansion.
  • Revenue growth expectations of about 12% per year above the 10.2% figure cited for the wider US market, which challenges a bearish claim that Alphabet is slowing dramatically relative to peers but still leaves open questions about how the earnings line tracks if margins change.

Valuation signal with earnings quality caveat

• The current share price of US$322.86 is about 4.7% below a DCF fair value of roughly US$338.94, while the P/E of 29.6x sits below a 37.9x peer average but above the 12x industry average.
• Investors weighing a more bullish narrative against the risks can see both support and friction in these figures, with:
  • The price sitting modestly under the DCF fair value estimate and below the peer P/E, which is often used in bullish arguments that the stock is not priced at the top of the range relative to similar large companies.
  • A flagged risk that reported earnings contain a high level of non cash items, which means the improved margin and P/E comparisons might not fully capture the cash generating profile and can make bulls more reliant on detailed earnings quality checks.

Curious how these numbers are shaping different long term storylines around Alphabet and what investors are focusing on next in their narratives about growth, margins, and valuation? 📊 Read the full Alphabet Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Alphabet's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Alphabet’s forecast earnings growth of about 11.5% per year sits below its five year earnings growth of 17.3% per year, which may leave some investors wanting stronger growth potential.

If that slower forecast growth has you looking for stronger upside potential, check out our screener containing 24 high quality undiscovered gems that might better match your appetite for future expansion.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.