Key Takeaways
- Amazon delivered $716.9B in total 2025 revenue, while AWS expanded 20% to reach $128.7B
- Alphabet achieved $402.8B in 2025 revenue, with Google Cloud surging 48% during Q4
- Amazon’s free cash flow fell from $38B to $11B as the company invested heavily in AI infrastructure
- Alphabet generated $129B in operating income and $132.2B in net income for the year
- Wall Street analysts assign both companies a Moderate Buy consensus rating
Amazon and Alphabet rank among the world’s most valuable corporations. Each company is making substantial commitments to artificial intelligence, yet their financial approaches present distinct opportunities for shareholders.
Amazon’s full-year 2025 performance showed revenue of $716.9 billion, representing 12% growth compared to the previous year. The company achieved $80 billion in operating income and $77.7 billion in net income.
AWS emerged as Amazon’s strongest business segment. The cloud computing division generated $128.7 billion in revenue, marking a 20% increase, alongside operating income of $45.6 billion.
CEO Andy Jassy highlighted that Amazon’s AI services within AWS have reached an annualized revenue run rate exceeding $15 billion. The company’s semiconductor operations have surpassed a $20 billion annualized run rate.
Amazon has outlined approximately $200 billion in capital expenditures planned for 2026, with the majority allocated toward AI infrastructure. This aggressive investment strategy resulted in a significant decline in free cash flow, dropping from $38 billion to $11 billion.
Alphabet posted impressive results for the year. The company’s total 2025 revenue hit $402.8 billion. Google Services contributed $342.7 billion, while Google Cloud added $58.7 billion.
Alphabet’s operating income climbed to $129 billion. The company reported net income of $132.2 billion.
YouTube and Google Cloud Power Revenue Expansion
During the fourth quarter of 2025, Google Cloud revenue surged 48% to reach $17.7 billion. Cloud operating income expanded to $13.9 billion, compared to $6.1 billion in the prior year.
YouTube generated over $60 billion for the full year when combining advertising and subscription revenue. Google Services revenue increased 14% to $95.9 billion in Q4 alone.
These figures demonstrate that Alphabet’s traditional search and advertising operations continue delivering solid growth while its cloud business accelerates.
Analyst Perspectives and Price Targets
MarketBeat data shows Amazon receiving a Moderate Buy consensus from 59 analysts. The rating distribution includes 1 Strong Buy, 54 Buy, and 4 Hold recommendations. Analysts set an average price target of $287.29.
Alphabet receives a Moderate Buy rating from 51 analysts. The breakdown consists of 3 Strong Buy, 44 Buy, and 4 Hold ratings. The consensus price target stands at $366.76.
Neither company has received any Sell ratings from analysts tracked by MarketBeat.
Alphabet’s analyst composition leans marginally more bullish, whereas Amazon attracts wider coverage from Wall Street firms.
Amazon currently pursues a more aggressive spending strategy. Alphabet delivers higher profitability when measured against its revenue base.
Investment Considerations
Amazon appeals to investors prioritizing AI infrastructure expansion and long-term market positioning, despite elevated near-term capital allocation. Alphabet matches investors seeking robust current profitability, market leadership in search, and rapid cloud division growth.
Both companies receive Moderate Buy ratings, with zero Sell recommendations appearing in the latest analyst coverage data.
