Key Takeaways
- Amazon delivered $716.9B in total 2025 revenue, while AWS cloud revenue climbed 20% to $128.7B
- Alphabet’s full-year 2025 revenue reached $402.8B, with Google Cloud surging 48% in the final quarter
- Free cash flow at Amazon fell from $38B to $11B as the company ramps up AI infrastructure investments
- Alphabet recorded $129B in operating income and $132.2B in net income for 2025
- Wall Street assigns both companies a Moderate Buy consensus with no Sell ratings
Amazon and Alphabet stand among the world’s most valuable corporations. Each is making substantial artificial intelligence investments. Yet these tech giants present investors with distinctly different financial narratives.
For the full year 2025, Amazon announced revenue totaling $716.9 billion, representing a 12% year-over-year increase. The company’s operating income reached $80 billion, while net income landed at $77.7 billion.
Amazon Web Services emerged as the clear highlight. AWS generated $128.7 billion in revenue, marking a 20% gain, accompanied by operating income of $45.6 billion.
CEO Andy Jassy highlighted that Amazon’s AI-related services within AWS are now generating more than $15 billion on an annualized basis. Additionally, the company’s semiconductor business has surpassed a $20 billion annual run rate.
Amazon has outlined approximately $200 billion in capital expenditures planned for 2026, with the majority earmarked for AI infrastructure buildout. This aggressive spending strategy contributed to a dramatic decline in free cash flow, which dropped from $38 billion down to $11 billion.
Alphabet also posted impressive results. The company’s 2025 revenue totaled $402.8 billion. Google Services contributed $342.7 billion, while Google Cloud accounted for $58.7 billion.
Alphabet’s operating income climbed to $129 billion. The company reported net income of $132.2 billion.
Cloud Services and YouTube Fuel Alphabet’s Momentum
During the fourth quarter of 2025, Google Cloud revenue skyrocketed 48% to reach $17.7 billion. Operating income from the cloud segment expanded to $13.9 billion, compared to $6.1 billion in the prior-year period.
YouTube generated over $60 billion throughout the year when combining advertising and subscription revenue. In Q4 specifically, Google Services revenue increased 14% to $95.9 billion.
These figures demonstrate that Alphabet’s foundational search and advertising operations continue expanding at a robust rate while its cloud business simultaneously accelerates.
Analyst Perspectives and Price Targets
Data from MarketBeat shows Amazon receiving a Moderate Buy consensus rating from 59 Wall Street analysts. The distribution includes 1 Strong Buy, 54 Buy, and 4 Hold recommendations. Analysts have set an average price target of $287.29.
Alphabet similarly earns a Moderate Buy consensus from 51 analysts. The rating composition 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 among analysts tracked by MarketBeat.
Alphabet’s analyst composition skews marginally more optimistic, whereas Amazon attracts wider overall analyst coverage throughout the investment community.
Amazon is committing to more aggressive capital deployment currently. Alphabet is delivering stronger profitability margins relative to its revenue generation.
Investment Considerations
Amazon represents the superior choice for investors prioritizing AI infrastructure expansion and long-term scalability, despite elevated near-term capital commitments. Alphabet appeals to investors seeking robust current profitability, market-leading search operations, and a rapidly expanding cloud platform.
Both stocks maintain Moderate Buy ratings from Wall Street, and neither faces any Sell recommendations based on the most recent analyst data available.
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