TLDR

  • Amazon reported 2025 revenue of $716.9B, with AWS expanding 20% to $128.7B
  • Alphabet’s total 2025 revenue surpassed $402.8B, with Google Cloud surging 48% in Q4
  • Amazon’s free cash flow fell from $38B to $11B on substantial AI infrastructure investment
  • Alphabet’s operating income reached $129B, with net income at $132.2B
  • Wall Street analysts give both stocks a Moderate Buy consensus rating

(SeaPRwire) –   Amazon and Alphabet rank among the world’s largest corporations. Each is making a major commitment to artificial intelligence. However, they present investors with distinctly different financial pictures.

Amazon announced full-year 2025 revenue of $716.9 billion, a 12% increase from the prior year. Operating income was $80 billion, and net income reached $77.7 billion.

Amazon.com, Inc., AMZN
AMZN Stock Card

AWS, the company’s cloud unit, delivered a standout performance. It generated $128.7 billion in revenue, growing 20%, and produced operating income of $45.6 billion.

CEO Andy Jassy stated that Amazon’s AI services on AWS are now exceeding $15 billion in annualized revenue. The firm’s chip business has achieved an annualized run rate surpassing $20 billion.

Amazon is preparing for roughly $200 billion in capital expenditures during 2026, primarily for AI infrastructure. This investment caused free cash flow to decline significantly, from $38 billion down to $11 billion.

Alphabet also experienced a robust year. Its 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. Net income finished at $132.2 billion.

Google Cloud and YouTube Drive Growth

During the fourth quarter of 2025, Google Cloud revenue soared 48% to $17.7 billion. Cloud operating income increased to $13.9 billion, up from $6.1 billion in the previous year.

Alphabet Inc., GOOGL
GOOGL Stock Card

YouTube generated over $60 billion from advertising and subscriptions for the full year. Google Services revenue grew 14% to $95.9 billion in the fourth quarter alone.

This demonstrates that the core search and advertising operations continue to expand steadily alongside the company’s cloud growth.

What Wall Street Is Saying

Per MarketBeat, Amazon has a Moderate Buy consensus rating from 59 analysts. This consists of 1 Strong Buy, 54 Buy, and 4 Hold recommendations. The average price target is $287.29.

Alphabet also holds a Moderate Buy rating from 51 analysts. This includes 3 Strong Buy, 44 Buy, and 4 Hold ratings. The average price target stands at $366.76.

Neither stock has received any Sell ratings from analysts followed by MarketBeat.

The analyst sentiment for Alphabet is marginally more optimistic, whereas Amazon enjoys wider overall coverage on Wall Street.

Amazon is currently investing more aggressively. Alphabet is producing greater profit relative to its revenue size.

Final Thoughts

Amazon is the choice for investors targeting AI infrastructure growth and long-term scale, despite higher short-term expenditures. Alphabet fits investors seeking strong present profitability, a commanding search business, and a rapidly expanding cloud segment.

Both companies hold Moderate Buy ratings, and according to the most recent data, analysts have not issued a Sell recommendation for either.

This article is provided by a third-party content provider. SeaPRwire (https://www.seaprwire.com/) makes no warranties or representations regarding its content.

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