Alphabet Inc.
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
GOOGL$284.78+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0001652044-25-000062
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0001652044-25-000091
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 228 previous paragraphs and 232 current paragraphs.
168 unchanged; 48 reworded; 11 added; 10 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
•Cost of revenues was $41.4 billion, an increase of 13% year over year, primarily driven by increases in content acquisition costs, TAC, depreciation expense, and other technical infrastructure operations costs.
Current report
•On September 5, 2025, the EC announced its decision that Google had infringed European competition laws. The EC decision imposed a $3.5 billion fine which we accrued in general and administrative expenses in our Google Services segment for the three months ended September 30, 2025.
Current report
•OI&E of $12.8 billion for the three months ended September 30, 2025 included net gains on equity securities of $10.7 billion, primarily related to unrealized gains on our non-marketable equity securities.
Current report
•Changes to U.S. tax law enacted on July 4, 2025, allow, among other things, for immediate expensing of domestic research and experimentation costs and accelerated depreciation on eligible capital expenditures, the effects of which are included in operating cash flows for the three months ended September 30, 2025.
Current report
•Repurchases of Class A and Class C shares were $926 million and $10.6 billion, respectively, totaling $11.6 billion for the three months ended September 30, 2025.
Current report
•As of September 30, 2025, we had 190,167 employees.
Current report
R&D expenses increased $6.3 billion from the nine months ended September 30, 2024 to the nine months ended September 30, 2025, primarily driven by increases in employee compensation expenses of $3.0 billion and depreciation expense of $1.7 billion.
Current report
General and administrative expenses increased $3.8 billion from the three months ended September 30, 2024 to the three months ended September 30, 2025, primarily driven by an increase in expenses related to legal and other matters of $3.8 billion, largely the result of the $3.5 billion EC fine.
Current report
General and administrative expenses increased $6.4 billion from the nine months ended September 30, 2024 to the nine months ended September 30, 2025, primarily driven by an increase in expenses related to legal and other matters of $6.3 billion, largely the result of the $3.5 billion EC fine accrued in the third quarter of 2025 and a $1.4 billion legal accrual made in the second quarter of 2025.
Current report
Changes to U.S. tax law enacted on July 4, 2025, allow for immediate expensing of domestic research and experimentation costs, accelerated depreciation on eligible capital expenditures, and other tax law changes impacting 2025 with certain changes effective in 2026. These changes are reflected in our results for the three and nine months ended September 30, 2025.
Current report
In September 2025, the EC announced its decision that Google had infringed European competition laws through “self-preferencing” practices on the buy-side and the sell-side relating to its advertising technology. The EC imposed a €3.0 billion fine ($3.5 billion as of September 5, 2025), which was accrued in the third quarter of 2025.
Removed paragraphs (10)
Previous report
•Cost of revenues was $39.0 billion, an increase of 10% year over year, primarily driven by increases in TAC, content acquisition costs, and depreciation expense.
Previous report
•General and administrative expenses of $5.2 billion for the three months ended June 30, 2025 included a$1.4 billion charge in our Google Services segment related to a settlement in principle of certain legal matters.
Previous report
•In May 2025, Alphabet issued fixed-rate senior unsecured notes for net proceeds of $12.5 billion to be used for general corporate purposes. For additional information, see Note 6 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous report
•Repurchases of Class A and Class C shares were $2.5 billion and $10.7 billion, respectively, totaling $13.3 billion for the three months ended June 30, 2025. For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous report
•As of June 30, 2025, we had 187,103 employees.
Previous report
On July 4, 2025 the OBBBA was signed into law. We are assessing the legislation and its effects on our business, operations, and financial results, including the potential effects on our effective tax rate.
Previous report
General and administrative expenses increased $2.1 billion and $2.6 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025, primarily driven by an increase in expenses related to legal and other matters of $2.3 billion and $2.6 billion, respectively, largely due to a settlement in principle of certain legal matters.
Previous report
Google Services operating income increased $8.2 billion from the six months ended June 30, 2024 to the six months ended June 30, 2025. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in TAC and content acquisition costs.
Previous report
OI&E, net increased $2.5 billion from the three months ended June 30, 2024 to the three months ended June 30, 2025 primarily due to an increase in net gains on equity and debt securities. The increase was primarily due to an increase in net unrealized gains on equity securities resulting from market-driven changes and fair value adjustments related to observable transactions, and increased net gains on debt securities due to lower market interest rates.
Previous report
On July 4, 2025, the OBBBA was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. We are assessing the legislation and its effect on our consolidated financial statements, which we expect to begin reflecting in the three month period ended September 30, 2025.
Reworded paragraphs (48)
Previous wording
•Google Cloud Platform, which generates consumption-based fees and subscriptions for infrastructure, platform, and other services. These services provide access to solutions such as AI offerings including our AI infrastructure, Vertex AI platform, and Gemini for Google Cloud: cybersecurity; and data and analytics;
Current wording
•Google Cloud Platform, which generates consumption-based fees and subscriptions for infrastructure, platform, and other services. These services provide access to solutions such as AI offerings including our AI infrastructure, Vertex AI platform, and Gemini Enterprise: cybersecurity; and data and analytics;
Previous wording
•Revenues were $96.4 billion, an increase of 14% year over year, primarily driven by an increase in Google Services revenues of $8.6 billion, or 12%, and an increase in Google Cloud revenues of $3.3 billion, or 32%.
Current wording
•Revenues were $102.3 billion, an increase of 16% year over year, primarily driven by an increase in Google Services revenues of $10.5 billion, or 14%, and an increase in Google Cloud revenues of $3.8 billion, or 34%.
Previous wording
•Total constant currency revenues, which exclude the effect of hedging, increased 13% year over year.
Current wording
•Total constant currency revenues, which exclude the effect of hedging, increased 15% year over year.
Previous wording
•Operating expenses were $26.1 billion, an increase of 20% year over year, primarily driven by increases in expenses related to legal and other matters, employee compensation expenses, and depreciation expense.
Current wording
•Operating expenses were $29.7 billion, an increase of 28% year over year, primarily driven by increases in expenses related to legal and other matters, employee compensation expenses, and depreciation expense.
Previous wording
•Operating cash flow was $27.7 billion for the three months ended June 30, 2025.
Current wording
•Operating cash flow was $48.4 billion for the three months ended September 30, 2025.
Previous wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $22.4 billion for the three months ended June 30, 2025.
Current wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $24.0 billion for the three months ended September 30, 2025.
Previous wording
Google Search & other revenues increased $5.7 billion and $10.2 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Current wording
Google Search & other revenues increased $7.2 billion and $17.4 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Previous wording
YouTube ads revenues increased $1.1 billion and $2.0 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025. The growth was driven by our direct response advertising products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.
Current wording
YouTube ads revenues increased $1.3 billion and $3.3 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025. The growth was driven by our direct response advertising products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.
Previous wording
Google Network revenues decreased $90 million from the three months ended June 30, 2024 to the three months ended June 30, 2025, primarily due to a decrease in AdSense and Google Ad Manager revenues, partially offset by an increase in AdMob revenues.
Current wording
Google Network revenues decreased $194 million from the three months ended September 30, 2024 to the three months ended September 30, 2025, primarily due to a decrease in AdSense, partially offset by an increase in AdMob revenues.
Previous wording
Google Network revenues decreased $247 million from the six months ended June 30, 2024 to the six months ended June 30, 2025, primarily due to a decrease in Google Ad Manager revenues and the unfavorable effect of foreign currency exchange rates. These decreases were partially offset by an increase in AdSense revenues.
Current wording
Google Network revenues decreased $441 million from the nine months ended September 30, 2024 to the nine months ended September 30, 2025, primarily due to a decrease in AdSense and Google Ad Manager revenues.
Previous wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from three and six months ended June 30, 2024 to three and six months ended June 30, 2025:
Current wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025:
Previous wording
Google subscriptions, platforms, and devices revenues increased $1.9 billion and $3.5 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025. The growth was primarily driven by an increase in subscription revenues. This increase was primarily due to the contribution from growth in paid subscriptions across both YouTube services and Google One.
Current wording
Google subscriptions, platforms, and devices revenues increased $2.2 billion and $5.7 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025. The growth was primarily driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid subscriptions across both YouTube services and Google One.
Previous wording
Google Cloud revenues increased $3.3 billion and $6.0 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 primarily driven by growth in Google Cloud Platform largely from infrastructure services.
Current wording
Google Cloud revenues increased $3.8 billion and $9.8 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025 primarily driven by growth in Google Cloud Platform largely from infrastructure services.
Previous wording
(1)Total constant currency revenues of $96.0 billion for the three months ended June 30, 2025 increased $11.4 billion compared to $84.6 billion in revenues, excluding hedging effect, for the three months ended June 30, 2024.
Current wording
(1)Total constant currency revenues of $101.2 billion for the three months ended September 30, 2025 increased $13.0 billion compared to $88.3 billion in revenues, excluding hedging effect, for the three months ended September 30, 2024.
Previous wording
Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Brazilian real and Mexican peso.
Current wording
Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Argentine peso.
Previous wording
(1)Total constant currency revenues of $187.6 billion for the six months ended June 30, 2025 increased $22.5 billion compared to$165.1 billion in revenues, excluding hedging effect, for the six months ended June 30, 2024.
Current wording
(1)Total constant currency revenues of $288.8 billion for the nine months ended September 30, 2025 increased $35.4 billion compared to $253.4 billion in revenues, excluding hedging effect, for the nine months ended September 30, 2024.
Previous wording
EMEA revenue growth was not materially affected by changes in foreign currency exchange rates, as the effect of the U.S. dollar weakening relative to the British pound was largely offset by the U.S. dollar strengthening relative to the Turkish lira.
Current wording
EMEA revenue growth was favorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar weakening relative to the euro and British pound, partially offset by the U.S. dollar strengthening relative to the Turkish lira.
Previous wording
APAC revenue growth was favorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar weakening relative to the Japanese yen, partially offset by the U.S. dollar strengthening relative to the South Korean won and Australian dollar.
Current wording
APAC revenue growth was not materially affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Australian dollar and Indian rupee, partially offset by the U.S dollar weakening relative to the Japanese yen.
Previous wording
Cost of revenues increased $3.5 billion from the three months ended June 30, 2024 to the three months ended June 30, 2025 due to an increase in other cost of revenues and TAC of $2.2 billion and $1.3 billion, respectively. Cost of revenues increased $6.2 billion from the six months ended June 30, 2024 to the six months ended June 30, 2025 due to an increase in other cost of revenues and TAC of $4.1 billion and $2.1 billion, respectively.
Current wording
Cost of revenues increased $4.9 billion from the three months ended September 30, 2024 to the three months ended September 30, 2025 due to an increase in other cost of revenues and TAC of $3.7 billion and $1.2 billion, respectively. Cost of revenues increased $11.1 billion from the nine months ended September 30, 2024 to the nine months ended September 30, 2025 due to an increase in other cost of revenues and TAC of $7.8 billion and $3.3 billion, respectively.
Previous wording
The increase in TAC from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 20.7% to 20.6% from the three months ended June 30, 2024 to the three months ended June 30, 2025 and decreased from 20.9% to 20.6% from the six months ended June 30, 2024 to the six months ended June 30, 2025, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties partially offset by an increase in the Google Search & other TAC rate. The TAC rate on Google Search & other revenues increased from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 primarily due to increases related to mobile searches. The TAC rate on Google Network revenues was substantially consistent from the three months ended June 30, 2024 to the three months ended June 30, 2025 and decreased from the six months ended June 30, 2024 to the six months ended June 30, 2025 due to a combination of factors, none of which were individually significant.
Current wording
The increase in TAC from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 20.8% to 20.1% from the three months ended September 30, 2024 to the three months ended September 30, 2025 and decreased from 20.8% to 20.4% from the nine months ended September 30, 2024 to the nine months ended September 30, 2025, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC rates on Google Search & other and Google Network revenues were substantially consistent from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025.
Previous wording
The increase in other cost of revenues from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, and certain app and platform distribution costs.
Current wording
The increase in other cost of revenues from the three months ended September 30, 2024 to the three months ended September 30, 2025 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, other technical infrastructure operations costs, and devices costs.
Previous wording
R&D expenses increased $1.9 billion and $3.6 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025, primarily driven by increases in employee compensation expenses of $851 million and $1.5 billion as well as depreciation expense of $575 million and $1.1 billion, respectively.
Current wording
R&D expenses increased $2.7 billion from the three months ended September 30, 2024 to the three months ended September 30, 2025, primarily driven by increases in employee compensation expenses of $1.5 billion, depreciation expense of $659 million, and other technical infrastructure operations costs of $407 million.
Previous wording
Sales and marketing expenses increased $55 million from the six months ended June 30, 2024 to the six months ended June 30, 2025, primarily driven by an increase in advertising and promotional activities of $361 million, partially offset by a decrease in employee compensation expenses of $314 million.
Current wording
Sales and marketing expenses increased $33 million from the nine months ended September 30, 2024 to the nine months ended September 30, 2025, primarily driven by an increase in advertising and promotional activities of $550 million, partially offset by a decrease in employee compensation expenses of $369 million.
Previous wording
We report our segment results as Google Services, Google Cloud, and Other Bets. Additionally, certain costs are not allocated to our segments because they represent Alphabet-level activities. For further details on our segments, Note 15 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current wording
We report our segment results as Google Services, Google Cloud, and Other Bets. Additionally, certain costs are not allocated to our segments because they represent Alphabet-level activities. For further details on our segments, see Note 15 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
(1)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $102 millionand $(112) millionfor the three months ended June 30, 2024 and 2025, respectively, and $174 million and $148 million for the six months ended June 30, 2024 and 2025, respectively. Alphabet-level activities include charges related to employee severance and office space charges.
Current wording
(1)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $17 millionand $(207) million for the three months ended September 30, 2024 and 2025, respectively, and $191 million and $(60) million for the nine months ended September 30, 2024 and 2025, respectively. Alphabet-level activities include charges related to employee severance and office space charges.
Previous wording
Google Services operating income increased $3.4 billion from the three months ended June 30, 2024 to the three months ended June 30, 2025. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in expenses related to legal and other matters, TAC, and content acquisition costs.
Current wording
Google Services operating income increased $2.7 billion and $10.8 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by an increase in expenses related to legal and other matters, content acquisition costs, and TAC.
Previous wording
Google Cloud operating income increased $1.7 billion and $2.9 billion from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure and employee compensation expenses.
Current wording
Google Cloud operating income increased $1.6 billion and $4.6 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure and employee compensation expenses.
Previous wording
Other Bets operating loss increased $112 million and $318 million from the three and six months ended June 30, 2024 to the three and six months ended June 30, 2025, respectively. The increase in operating loss was due to a combination of factors, none of which were individually significant.
Current wording
Other Bets operating loss increased $310 million and $628 million from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025, respectively. The increase in operating loss was due to a combination of factors, none of which were individually significant.
Previous wording
OI&E, net increased $10.9 billion from the six months ended June 30, 2024 to the six months ended June 30, 2025. The increase was primarily due to an increase in net unrealized gains on equity securities resulting from fair value adjustments related to observable transactions and market-driven changes.
Current wording
OI&E, net increased $9.6 billion and $20.5 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025, respectively. The increase was primarily due to increases in net unrealized gains on equity securities resulting from fair value adjustments on non-marketable equity securities.
Previous wording
The effective tax rate increased from the three months ended June 30, 2024 to the three months ended June 30, 2025. This increase was primarily due to a decrease in SBC-related tax benefits, and a non-deductible legal settlement in the U.S., partially offset by changes in prior period tax positions.
Current wording
The effective tax rate increased from the three months ended September 30, 2024 to the three months ended September 30, 2025. This increase was primarily due to a decrease in the U.S. Federal Foreign Derived Intangible Income tax deduction, and a non-deductible EC fine, partially offset by changes in prior period tax positions.
Previous wording
The effective tax rate increased from the six months ended June 30, 2024 to the six months ended June 30, 2025. This increase was primarily due to a decrease in SBC-related tax benefits, lower effective tax rate impacts in the U.S. federal Foreign Derived Intangible Income tax deduction, and a non-deductible legal settlement in the U.S., partially offset by changes in prior period tax positions.
Current wording
The effective tax rate increased from the nine months ended September 30, 2024 to the nine months ended September 30, 2025. This increase was primarily due to a decrease in the U.S. Federal Foreign Derived Intangible
Previous wording
The Organization for Economic Cooperation and Development is coordinating negotiations among more than 140 countries with the goal of achieving consensus around substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of 15%. Some countries have already implemented the legislation effective January 1, 2024, and we expect others to follow, however this did not have a material effect on our income tax provision for the period ending June 30, 2025.
Current wording
The Organization for Economic Cooperation and Development (OECD) is coordinating negotiations among more than 140 countries with the goal of achieving consensus around substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of 15%. Some countries have already implemented the legislation effective January 1, 2024, and we expect others to follow, however this did not have a material effect on our income tax provision for the period ending September 30, 2025.
Previous wording
As of June 30, 2025, we had $95.1 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Current wording
As of September 30, 2025, we had $98.5 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Previous wording
Net cash provided by operating activities increased from the six months ended June 30, 2024 to the six months ended June 30, 2025 due to an increase in cash received from customers, partially offset by an increase in cash payments for cost of revenues and operating expenses and an increase in income tax payments.
Current wording
Net cash provided by operating activities increased from the nine months ended September 30, 2024 to the nine months ended September 30, 2025 due to an increase in cash received from customers, partially offset by an increase in cash payments for cost of revenues and operating expenses.
Previous wording
Net cash used in investing activities increased from the six months ended June 30, 2024 to the six months ended June 30, 2025 primarily due to a decrease in maturities and sales of marketable securities and an increase in purchases of property and equipment primarily driven by investments in technical infrastructure.
Current wording
Net cash used in investing activities increased from the nine months ended September 30, 2024 to the nine months ended September 30, 2025 primarily due to an increase in purchases of property and equipment, driven by investments in technical infrastructure, and a decrease in maturities and sales of marketable securities.
Previous wording
Net cash used in financing activities decreased from the six months ended June 30, 2024 to the six months ended June 30, 2025 due to an increase in proceeds from issuance of debt, net of repayments.
Current wording
Net cash used in financing activities decreased from the nine months ended September 30, 2024 to the nine months ended September 30, 2025 due to an increase in proceeds from issuance of debt, net of repayments.
Previous wording
During the six months ended June 30, 2024 and 2025, we spent $25.2 billion and $39.6 billion on capital expenditures, respectively. We expect to increase, relative to 2024, our investment in our technical infrastructure, including servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support of AI products and services. Depreciation of our property and equipment commences when such assets are ready for our intended use. For the six months ended June 30, 2024 and 2025, depreciation on property and equipment was $7.1 billion and $9.5 billion, respectively.
Current wording
During the nine months ended September 30, 2024 and 2025, we spent $38.3 billion and $63.6 billion on capital expenditures, respectively. We expect full year 2025 capital expenditures to exceed full year 2024. In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure, including servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support of AI products and services. Depreciation of our property and equipment commences when such assets are ready for our intended use. For the nine months ended September 30, 2024 and 2025, depreciation on property and equipment was $11.1 billion and $15.1 billion, respectively.
Previous wording
As of June 30, 2025, the amount of total future lease payments under operating and finance leases was $17.4 billion and $2.6 billion, respectively.
Current wording
As of September 30, 2025, the amount of total future lease payments under operating and finance leases was $17.5 billion and $2.9 billion, respectively.
Previous wording
As of June 30, 2025, we have entered into leases primarily related to data centers that have not yet commenced with future lease payments of $23.9 billion. These leases will commence between 2025 and 2031 with non-cancelable lease terms between one and 25 years.
Current wording
As of September 30, 2025, we have entered into leases primarily related to data centers that have not yet commenced with future lease payments of $42.6 billion, including a purchase option considered reasonably certain to be exercised. These leases will commence between 2025 and 2031 with non-cancelable lease terms between one and 25 years.
Previous wording
In May 2025, we issued $5.0 billion of U.S. dollar-denominated fixed-rate senior unsecured notes in four tranches: $750 million of 4.00% notes due 2030, $1.25 billion of 4.50% notes due 2035, $1.5 billion of 5.25% notes due 2055, and $1.5 billion of 5.30% notes due 2065. Additionally in May 2025, we issued €6.75 billion of euro-denominated fixed-rate senior unsecured notes in five tranches: €1.5 billion of 2.50% notes due 2029, €1.5 billion of 3.00% notes due 2033, €1.25 billion of 3.38% notes due 2037, €1.25 billion of 3.88% notes due 2045, and €1.25 billion of 4.00% notes due 2054. The net proceeds from all notes issued in May 2025 are used for general corporate purposes.
Current wording
In May 2025, we issued $5.0 billion of U.S. dollar-denominated fixed-rate senior unsecured notes in four tranches: $750 million of 4.00% notes due 2030, $1.25 billion of 4.50% notes due 2035, $1.5 billion of 5.25% notes due 2055, and $1.5 billion of 5.30% notes due 2065. Additionally in May 2025, we issued €6.75 billion of euro-denominated fixed-rate senior unsecured notes in five tranches: €1.5 billion of 2.50% notes due 2029, €1.5 billion of 3.00% notes due 2033, €1.25 billion of 3.38% notes due 2037, €1.25 billion of 3.88% notes due 2045, and
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
APAC revenue growth was not materially affected by changes in foreign currency exchange rates.
Current report — wording carried from elsewhere
The increase in other cost of revenues from the nine months ended September 30, 2024 to the nine months ended September 30, 2025 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, and other technical infrastructure operations costs.
Current report — wording carried from elsewhere
Sales and marketing expenses decreased $22 million from the three months ended September 30, 2024 to the three months ended September 30, 2025, due to a combination of factors, none of which were individually significant.
Current report — wording carried from elsewhere
Income tax deduction, a non-deductible EC fine and legal settlement in the U.S., a decrease in SBC-related tax benefits, partially offset by changes in prior period tax positions.
Current report — wording carried from elsewhere
€1.25 billion of 4.00% notes due 2054. The net proceeds from all notes issued in May 2025 are used for general corporate purposes.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
APAC revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Australian dollar, South Korean won, and Indian rupee.
Previous report — wording carried elsewhere
Sales and marketing expenses increased $309 million from the three months ended June 30, 2024 to the three months ended June 30, 2025, primarily driven by an increase in advertising and promotional activities of $305 million.