Company: GOOGL
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001652044-25-000091
Chunk: 147

Company: Alphabet Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 147
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(612)489 Gain (loss) on equity securities, net1,821 10,734 3,350 21,778 Performance fees29 (174)261 (297)Income (loss) and impairment from equity method investments, net(107)(30)(101)367 Other70 1,317 465 1,895 Other income (expense), net$3,185 $12,759 $6,154 $26,604 

OI&E, net increased $9.6 billion and $20.5 billion from the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2025, respectively. The increase was primarily due to increases in net unrealized gains on equity securities resulting from fair value adjustments on non-marketable equity securities.

For additional information, see Note 3 and Note 7 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.

Provision for Income Taxes

The following table presents provision for income taxes (in millions, except effective tax rate):

Three Months EndedNine Months EndedSeptember 30,September 30,2024202520242025Income before provision for income taxes$31,706 $43,987 $87,572 $119,709 Provision for income taxes$5,405 $9,008 $13,990 $21,994 Effective tax rate17.0 %20.5 %16.0 %18.4 %

The effective tax rate increased from the three months ended September 30, 2024 to the three months ended September 30, 2025. This increase was primarily due to a decrease in the U.S. Federal Foreign Derived Intangible Income tax deduction, and a non-deductible EC fine, partially offset by changes in prior period tax positions.

The effective tax rate increased from the nine months ended September 30, 2024 to the nine months ended September 30, 2025. This increase was primarily due to a decrease in the U.S. Federal Foreign Derived Intangible 

46

Income tax deduction, a non-deductible EC fine and legal settlement in the U.S., a decrease in SBC-related tax benefits, partially offset by changes in prior period tax positions.

Changes to U.S. tax law enacted on July 4, 2025, allow for immediate expensing of