Gemini Set to Bring Significant Improvements to Google’s Ad Business

The numbers

$113.8 billion—Alphabet’s Q4 revenue, up +18% year-over-year.

$95.9 billion—Revenue generated by Google Services during the quarter, which includes Google Search, subscriptions, platforms, devices, and YouTube ads. 

$13.6 billion—YouTube advertising. 

$17.7 billion—Google Cloud revenue, up +48% from the same period in 2024.

Over 750 million—Gemini monthly active users.

The watercooler talk

Google’s parent company, Alphabet, enjoyed a second consecutive quarter of over $100 billion in revenue, recording nearly $114 billion in the final quarter of 2025. The company boasted that, for the first time, its annual revenues exceeded $400 billion. 

Executives noted that more than 120,000 enterprises, including Airbus, Honeywell, Salesforce, and Shopify, use their AI tools, specifically Gemini. They also mentioned their collaboration with Apple, noting that Apple named them its preferred cloud provider and that they will help develop the iPhone maker’s next generation of Apple Foundation models based on Gemini technology.

“The launch of Gemini 3 was a major milestone, and we have great momentum,” said Google CEO Sundar Pichai. “Our first-party models, like Gemini, now process over 10 billion tokens per minute via direct API use by our customers, and the Gemini app has grown to over 750 million monthly active users. Search saw more usage than ever before, with AI continuing to drive an expansionary moment.”

Direct response was the primary driver of YouTube’s ad growth, which increased by 9%; however, network advertising revenues were down 2% year over year this quarter.

Alphabet says it’s investing in AI to drive “significant improvements” across all areas of marketing. The company sees benefits across three critical areas: ad quality, improving query understanding; ad tools, bringing greater accuracy; and AI user experiences, which will better match ads and products to the right user.

The key quote

“We’re expanding the entire playing field that advertisers can compete on. AI gives businesses the ability to reach more customers in more places than ever before.” — Philipp Schindler, svp and CBO, Google