Key Takeaways
- Amazon’s 2025 revenue reached $716.9B, with AWS cloud services expanding 20% to $128.7B
- Alphabet generated $402.8B in total 2025 revenue, featuring 48% Q4 growth in Google Cloud
- Free cash flow at Amazon declined from $38B to $11B amid substantial AI infrastructure investments
- Alphabet delivered $129B in operating income and $132.2B in net income for 2025
- Wall Street analysts assign both tech giants a Moderate Buy consensus recommendation
Amazon and Alphabet stand among the planet’s most valuable corporations. Each is placing massive wagers on artificial intelligence. Yet they present shareholders with distinctly different financial characteristics.
Amazon disclosed annual 2025 revenue totaling $716.9 billion, reflecting a 12% year-over-year climb. The company recorded $80 billion in operating income alongside $77.7 billion in net income.
AWS, the e-commerce giant’s cloud computing arm, emerged as the star performer. The division generated $128.7 billion in revenue, marking a 20% surge, while delivering $45.6 billion in operating income.
Chief Executive Andy Jassy highlighted that Amazon’s AI offerings within AWS now operate at an annualized revenue rate exceeding $15 billion. Additionally, the company’s semiconductor division has surpassed a $20 billion annualized run rate.
Amazon plans to deploy approximately $200 billion in capital expenditures throughout 2026, predominantly targeting AI infrastructure buildout. This aggressive spending contributed to a dramatic free cash flow contraction, falling from $38 billion to $11 billion.
Alphabet similarly delivered impressive annual results. The company’s total 2025 revenue hit $402.8 billion. Google Services contributed $342.7 billion, while Google Cloud delivered $58.7 billion.
Alphabet’s operating income climbed to $129 billion. The company posted net income of $132.2 billion.
Cloud Computing and Video Platform Fuel Alphabet’s Expansion
During the fourth quarter of 2025, Google Cloud revenue surged 48% to reach $17.7 billion. Operating income from the cloud segment escalated to $13.9 billion, compared with $6.1 billion in the previous year.
YouTube accumulated over $60 billion throughout the complete year when combining advertising and subscription revenue streams. Google Services revenue climbed 14% to $95.9 billion in the fourth quarter exclusively.
This performance demonstrates that the flagship search and advertising operations continue expanding steadily while cloud services accelerate dramatically.
Analyst Sentiment and Price Targets
Based on MarketBeat data, Amazon receives a Moderate Buy consensus recommendation from 59 Wall Street analysts. The distribution consists of 1 Strong Buy, 54 Buy, and 4 Hold ratings. Analysts project an average price target of $287.29.
Alphabet similarly garners a Moderate Buy rating from 51 analysts. The breakdown includes 3 Strong Buy, 44 Buy, and 4 Hold recommendations. The consensus price target stands at $366.76.
Neither company has received any Sell ratings from the analysts MarketBeat monitors.
Alphabet’s analyst composition skews marginally more positive, whereas Amazon benefits from wider analyst coverage throughout the investment community.
Amazon pursues a more aggressive spending strategy currently. Alphabet produces higher profitability relative to its revenue generation.
Investment Verdict
Amazon represents the optimal choice for investors prioritizing AI infrastructure expansion and long-horizon scalability, despite elevated near-term capital deployment. Alphabet appeals to investors seeking robust current profitability, a commanding search franchise, and rapidly accelerating cloud operations.
Both companies maintain Moderate Buy ratings, with zero Sell recommendations from analysts according to the most recent data available.
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