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Alphabet reports Q4 2016 revenue of $26 billion, ‘great momentum’ for Google’s new hardware

Alphabet has just published Q4 2016 earnings of $26 billion, up 22% from the same quarter last year. Covering the final three months of the year, these numbers notably include the first holiday season featuring the Google-made Pixel and Home. While beating analyst expectations, the stock is down in after-hours trading.

Revenue is up 22% from $21.3 billion in Q4 2015, with net income at $5.3 billion for this quarter. For comparison, Alphabet reported $22.4 billion in revenue and $5 billion in net income last quarter.

Not reported separately, Google’s hardware sales are grouped together with Play Store sales, enterprise efforts, and more in “Other Revenues.” Year-over-year, it is up 62% to $3.4 billion and a notable increase from $2.4 billion last quarter. CFO Ruth Porat notes, “great momentum in Google’s newer investment areas and ongoing strong progress in Other Bet.”

The much-analyzed “Other Bets” is again losing money, but continues to show increased revenue from the previous quarter. Revenues were $262 million and an operating loss of $1 billion.

Since last quarter, Alphabet has made a number of significant moves in regard to its subsidiaries. The self-driving car project was spun out as its own company called Waymo and continues testing with their latest vehicle from Chrysler.

Meanwhile, streamlining is still underway with the Project Wing delivery drone on pause and internet-oriented Project Titan shut down. Meanwhile, the Terra Bella satellite division working on live imagery is being sold off.

As usual, Alphabet will hold an earnings call with investors and members of the press to further break down numbers from its Q4 2016 earnings release. You can follow along via the livestream below and we’ll have coverage of any notable tidbits the company reveals.

https://www.youtube.com/watch?v=A0Gqd_r-8ng

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Avatar for Abner Li Abner Li

Editor-in-chief. Interested in the minutiae of Google and Alphabet. Tips/talk: abner@9to5g.com

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