Alphabet Inc. reported its fourth-quarter results, marking a major milestone as the company’s annual revenue topped $400 billion for the first time. The tech giant brought in $407.8 billion in total revenue for the full year, up from $307.4 billion in 2022. This growth was driven by strong performance across its core businesses, especially Google Search, YouTube, and Google Cloud.

(Alphabet Reports Q4 Revenue Surpassing 400 Billion Annual Milestone for First Time.)

In the final quarter of the year, Alphabet posted revenue of $86.3 billion, a 13% increase compared to the same period last year. Advertising remained the largest source of income, with Google Search and other ad-related services generating $69.8 billion for the year. YouTube ads also saw steady gains, bringing in $31.1 billion over the 12 months.

Google Cloud continued its upward trajectory, reporting $9.2 billion in revenue for the quarter. The segment turned a profit again, showing improved margins and broader enterprise adoption. Other Bets, which includes experimental projects like Waymo and Verily, contributed $1.1 billion in Q4 but still operated at a loss.

The company said it returned $75 billion to shareholders in 2023 through stock buybacks and dividends. It also announced a new $70 billion share repurchase program starting this year. Alphabet’s leadership pointed to advances in artificial intelligence as a key factor behind recent product improvements and user engagement.

(Alphabet Reports Q4 Revenue Surpassing 400 Billion Annual Milestone for First Time.)

Operating income for the year reached $110.3 billion, reflecting tighter cost controls and higher ad revenue. The company added that it is investing heavily in AI infrastructure to support future growth. Employee headcount stayed relatively flat compared to last year, as Alphabet focused on efficiency without large-scale hiring.