Google vs Oracle: Revenue, Profit and Business Model
Google reported $402.8B of revenue in FY2025 and $132.2B of net income. Oracle reported $67.4B of revenue in FY2026 and $17.1B of net income.
Latest financial snapshot
Financial summary
Alphabet's FY2025 Form 10-K reported $402.836 billion of revenue and $132.170 billion of net income, making it one of the most profitable companies in the world. Growth accelerated in 2026: Q2 2026 revenue rose 24% year over year to $119.8 billion, operating income rose 30% to $40.8 billion and operating margin reached 34.0%. Reported Q2 net income of $112.1 billion was inflated by a $99.0 billion gain, mostly unrealized gains on equity holdings, so operating income is the cleaner measure. The trade-off is spending: management raised 2026 capital expenditure guidance to $195-205 billion, and analysts flagged negative free cash flow in Q2 2026 as data-center investment outpaced operating cash flow.
Oracle
Oracle's revenue grew from $39.1 billion in FY2020 to $57.4 billion in FY2025 and $67.36 billion in FY2026, when net income was $17.09 billion. Growth is now driven by cloud: Q1 FY2027 cloud revenue (IaaS plus SaaS) was $11.6 billion, up 62%, and operating cash flow was a record $23 billion for the quarter. The other side of the ledger is capex. FY2026 capital spending of $55.7 billion pushed free cash flow negative, and Oracle has funded the gap with bond issuance and equity sales. Management guides to at least $90 billion of FY2027 revenue and non-GAAP EPS of $8.10.
Revenue and profit by year
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $402.8B | $132.2B | 32.8% | +15.1% | Source |
| FY2024 | $350B | $100.1B | 28.6% | +13.9% | Source |
| FY2023 | $307.4B | $73.8B | 24.0% | +8.7% | Source |
| FY2022 | $282.8B | $60B | 21.2% | +9.8% | Source |
| FY2021 | $257.6B | $76B | 29.5% | +41.2% | Source |
| FY2020 | $182.5B | $40.3B | 22.1% | +12.8% | Source |
| FY2019 | $161.9B | $34.3B | 21.2% | +18.3% | Source |
| FY2018 | $136.8B | $30.7B | 22.5% | +23.4% | Source |
| FY2017 | $110.9B | $12.7B | 11.4% | +22.8% | Source |
| FY2016 | $90.3B | $19.5B | 21.6% | — | Source |
Oracle
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $67.4B | $17.1B | 25.4% | +17.3% | Source |
| FY2025 | $57.4B | $12.4B | 21.7% | +8.4% | Source |
| FY2024 | $53B | $10.5B | 19.8% | +6.0% | Source |
| FY2023 | $50B | $8.5B | 17.0% | +17.7% | Source |
| FY2022 | $42.4B | $6.7B | 15.8% | +4.8% | Source |
| FY2021 | $40.5B | $13.7B | 34.0% | +3.6% | Source |
| FY2020 | $39.1B | $10.1B | 25.9% | -1.1% | Source |
| FY2019 | $39.5B | $11.1B | 28.1% | +0.3% | Source |
| FY2018 | $39.4B | $3.6B | 9.1% | +4.2% | Source |
| FY2017 | $37.8B | $9.5B | 25.0% | — | Source |
Where the revenue comes from
- Google Search advertising~12%
Auction-based text and shopping ads served alongside organic search results, generating approximately $198 billion in FY2024 through cost-per-click and cost-per-impression pricing.
- YouTube advertising~12%
Video advertising across pre-roll, mid-roll, display, and Shorts formats, plus subscription revenue from YouTube Premium, Music, and YouTube TV, totaling approximately $36 billion in ad revenue for FY2024.
- Google Cloud~12%
Infrastructure-as-a-service, platform tools, Vertex AI, BigQuery, Mandiant cybersecurity, and Google Workspace subscriptions, generating significant FY2025 revenue.
- Google Network~12%
Ads placed on third-party websites through AdSense, AdMob, and Google Ad Manager, generating approximately $31 billion in FY2024 with revenue shared with publishers.
- Other Bets~12%
Revenue from Waymo autonomous ride-hailing, Verily health technology, hardware sales (Pixel, Nest, Fitbit), Google Play commissions, and other non-advertising sources.
Oracle
- Cloud Services and License SupportLargest
OCI, SaaS, database services, and recurring support revenue.
- Cloud License and On-Premise LicenseMaterial
New licenses and cloud license rights for enterprise software.
- ServicesMaterial
Consulting, support, and implementation work.
- HardwareSmaller
Exadata, engineered systems, and related hardware products.
Business model and strategy
How it makes money
Alphabet makes money mainly by selling ads against user intent and attention. Google Search & other, YouTube ads and the Google Network together account for roughly three quarters of revenue. Advertisers bid in real-time auctions to appear next to queries or videos, and Google charges per click, view or conversion.
Growth strategy
Alphabet's growth plan has four parts: put Gemini into Search (AI Overviews and AI Mode), Workspace, Android and Chrome to keep users and advertisers engaged; sell AI infrastructure, TPUs and Gemini models through Google Cloud, backed by the Wiz security platform acquired in March 2026; grow subscriptions such as YouTube Premium, YouTube TV and Google One AI plans;
Competitive advantage
Alphabet's edge is a stack few rivals own end to end: default distribution through Android and Chrome, the largest pool of search-intent data, YouTube's video audience, its own TPU chips and global data centers, and frontier models from Google DeepMind.
Oracle
How it makes money
Oracle sells to businesses and governments, not consumers. Its largest revenue line is cloud services and license support: customers pay recurring fees for OCI compute, storage, GPUs and database services, for Fusion Cloud ERP, HCM, SCM and NetSuite subscriptions, and for annual support on licensed Oracle Database and middleware.
Growth strategy
Oracle's growth plan rests on renting AI training and inference capacity at very large scale. It is building data centers for OpenAI under the Stargate program (a partnership OpenAI describes as over $300 billion across five years and up to 4.5 gigawatts), and it also serves xAI, Meta, NVIDIA and AMD workloads.
Competitive advantage
Oracle's edge comes from its installed base. Oracle Database runs core financial, telecom and government systems, and moving those workloads is slow, expensive and risky, which keeps support revenue recurring. OCI adds a price-performance pitch built on bare-metal servers and RDMA networking for large GPU clusters, and Oracle can offer the same database inside rival clouds.
Questions about Google vs Oracle
Which company has higher revenue — Alphabet Inc. or Oracle Corporation?
Alphabet Inc. reported $402.8B (FY2025), while Oracle Corporation reported $67.4B (FY2026). By last reported revenue, Alphabet Inc. is the larger business, with Oracle Corporation reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Alphabet Inc. vs Oracle Corporation?
Alphabet Inc.'s market capitalisation stands at $4.31T, while Oracle Corporation's is $393.6B. Alphabet Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Oracle Corporation.
Which is more financially efficient — Alphabet Inc. or Oracle Corporation?
Alphabet Inc. generates $2.11M / employee in revenue per employee, while Oracle Corporation generates $478k / employee. Alphabet Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Alphabet Inc. and Oracle Corporation make money?
Alphabet Inc. and Oracle Corporation generate revenue in fundamentally different ways. Alphabet Inc.: Alphabet makes money mainly by selling ads against user intent and attention. Oracle Corporation: Oracle sells to businesses and governments, not consumers.
Which company is valued higher relative to revenue — Alphabet Inc. or Oracle Corporation?
On a price-to-sales (P/S) basis, Alphabet Inc. trades at 10.7x P/S and Oracle Corporation at 5.8x P/S. Alphabet Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Oracle Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Alphabet Inc. bigger than Oracle Corporation?
By last reported revenue, Alphabet Inc. ($402.8B (FY2025)) is the larger company compared to Oracle Corporation ($67.4B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Google vs Oracle overview