Alphabet reported a 12% rise in fourth-quarter revenue to $96.5bn ($96.7bn expected).
The core advertising business, which includes Google Search and YouTube, saw revenue rise 10% to $84.1bn. Google Cloud revenue was up by 30% to $12.0bn ($12.2bn expected).
Operating income increased 31% to $30.9bn, with margins expanding by 5 percentage points.
Free cash flow generated was $24.8bn, Alphabet had a net cash position of $73.1bn as of the end of December, down from $86.6bn the prior year.
The company also announced plans to significantly increase capital expenditure, expecting to invest approximately $75bn in 2025.
The shares fell 7.2% in after-hours trading.
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