Alphabet's $32B Wiz deal reshapes Google Cloud's security and growth strategy
Alphabet has completed its largest-ever acquisition by purchasing cloud security firm Wiz for $32 billion. The deal, finalised in early 2025, marks a major expansion for Google Cloud. Wiz will keep its brand while operating under Google's cloud division.
The company also reported strong financial growth, with 2025 revenue hitting $402.84 billion—a 15% increase from the previous year. Net income rose even faster, climbing by 32% over the same period.
The Wiz acquisition closed after months of negotiations, setting a new record for Alphabet's spending. Under the agreement, Wiz remains independent but aligns with Google Cloud's strategy. Its security tools will still work across rival platforms like AWS and Azure.
Wiz employees now hold equity worth roughly $3 billion, with an extra $1.5 billion in cash and stock incentives to retain talent. The deal comes as Google Cloud's revenue surged in 2025, reaching $17.7 billion in the fourth quarter alone. That pushed its annualised run rate beyond $70 billion, a 48% jump from the year before.
Beyond cloud growth, Alphabet is investing heavily in infrastructure. Capital expenditures for 2026 are set between $175 billion and $185 billion—almost double 2025's spending. Meanwhile, Google Maps rolled out new features like 'Ask Maps', which answers complex questions in natural language, and 'Immersive Navigation', a 3D driving view with real-world landmarks.
Despite strong performance, Alphabet's stock remains about 10% below its 52-week peak. However, it has recovered well since its April 2025 lows, reflecting steady investor confidence.
The Wiz deal strengthens Google Cloud's security offerings while keeping the brand cross-platform. Alphabet's financial results show rapid growth in cloud revenue and overall profits. With massive planned investments and new product updates, the company is positioning itself for further expansion in 2026.
