Summary of information obtained
After collecting the accounting data and the data from the reports provided by Alphabet, you now have more information than most individual investors and can make an informed decision.
Let’s summarize so you can see how far we’ve come and the real power of these tools.
Accounting template
Company earnings
EBITDA, EBIT, Net Income and FCF
| Metric | Value ($ millions) |
|---|---|
| EBITDA | 129,497 |
| EBIT | 114,186 |
| Net Income | 98,703 |
| FCF | 98,703 |
Margins: EBITDA, EBIT and Net
| Margin | Value |
|---|---|
| EBITDA margin | 37% |
| EBIT margin | 33% |
| Net margin | 28% |
ROIC and ROE
| Ratio | Value |
|---|---|
| ROIC | 34% |
| ROE | 30% |
Reinvestment rate
Reinvestment rate: 41%
Company financial health
Net cash vs net debt
| Item | Value ($ millions) |
|---|---|
| Net debt | -83,775 |
Net debt / EBITDA ratio
How many years of EBITDA it would take the company to repay its debt.
| Ratio | Value |
|---|---|
| Net debt / EBITDA | -0.6 |
The negative sign reflects that the company has enough money to cover all its debts.
NotebookLM
Company revenue
What type of sales? Organic or inorganic?
Alphabet does not break down sales directly as organic/inorganic. We can say that most of Alphabet’s revenue is organic, from advertising on Google platforms (YouTube, Search, Browser, etc.).
Inorganic revenue, a small share, comes from acquisitions over the years (e.g. Character.AI was acquired in 2024; the Wiz and Intersect acquisitions are expected to close by end-2026).
Sales segmentation
By business line:
| Segment | Description |
|---|---|
| Google Services | Advertising (Search, YouTube, Google Network), subscriptions (YouTube Premium, Google One), Android platform, Play Store and devices (Pixel). |
| Google Cloud | GCP infrastructure and platform, Google Workspace collaboration tools. |
| Other Bets | Early-stage businesses (Waymo, Isomorphic Labs, etc.). |
By region (2025):
| Region | % revenue |
|---|---|
| United States | 48% |
| EMEA (Europe, Middle East, Africa) | 29% |
| APAC (Asia-Pacific) | 17% |
| Other Americas (Canada, Latin America) | 6% |
Recurrence in sales and pricing power
Recurrence in sales is driven by two pillars:
| Pillar | Detail |
|---|---|
| Consumer subscriptions | More than 325 million paid subscriptions (YouTube Music, YouTube Premium, Google One). Revenue recognized ratably, generally monthly. |
| Google Cloud and Workspace | Consumption-based and subscription pricing model. Backlog of $242.8 billion, with more than 50% expected to be recognized over the next 24 months. More than 8 million paid Gemini Enterprise seats in four months. |
Is there seasonality in sales?
Yes. Alphabet’s sales show marked seasonality: advertising revenue follows a seasonal pattern with particular strength in the fourth quarter (holiday season, “Cyber 5”).
Profit margins by business line
| Business line | Margin / Result | Notes |
|---|---|---|
| Google Services | 41.9% (Q4 2025) | Most profitable segment; up from 39.0% the prior year. |
| Google Cloud | 30.1% (Q4 2025) | Notable improvement from 17.5% in Q4 2024. |
| Other Bets | Operating loss $3.617B | Includes Waymo; impact of stock-based compensation charge (~$2.1B) related to Waymo valuation. |
Company financial health
Type of debt
The company has mainly fixed-rate debt, with some variable (floating) rate debt.
Use of debt: to create value or to destroy it?
Alphabet uses debt to fund technology expansion and infrastructure, and its operating cash flow to pay cash dividends and repurchase shares, with the aim of creating value for shareholders in a sustainable way.