How Alphabet makes money

Period

FY2025

How does Alphabet make money? This Sankey traces every dollar of revenue through the income statement — into cost of revenue, R&D, SG&A, and taxes — and shows what's left as profit. Pick any fiscal year, recent quarter, or the trailing twelve months. Straight from SEC filings.

Alphabet Inc. Class A · FY2025 · year ended 2025-12-31

Revenue$402.8BGross profit$240.3B · 60%Cost of revenue$162.5B · 40%Operating income$129.0B · 32%Operating expenses$111.3B · 28%R&D$61.1B · 15%SG&A$21.5B · 5%Selling & marketing$28.7B · 7%Pre-tax income$158.8B · 39%Other income$29.8B · 7%Net income$132.2B · 33%Income tax$26.7B · 7%

Each fiscal year from SEC filings. Percentages are share of revenue, so the green profit nodes read directly as gross / operating / net margin. Line items a company doesn't break out are derived from their siblings so the flows balance; small residuals show as “Other.” For informational purposes only.