At the start of 2025, Google appeared to be heading into one of the most dangerous periods in its history. The company faced multiple antitrust cases, rising competition in artificial intelligence and political uncertainty in Washington. There was a genuine risk that regulators could force Google to sell parts of its business, including Chrome or elements of its advertising operations.

That outcome never materialised. Instead, Google ends the year larger and more profitable than ever, having largely preserved its core business while gaining momentum in AI.

A year ago, the company was defending itself in three major legal fights. One centred on search, where US courts had ruled Google a monopoly and the Department of Justice was pushing for structural remedies. Another targeted its advertising technology, with the potential to split off major revenue-generating units. A third followed Google’s loss to Epic Games over Android app store rules, which threatened to reshape how Google collects fees from developers.

The most serious threat was the possibility of being forced to divest Chrome. While the court upheld that Google held monopoly power in search, Judge Amit Mehta rejected the most aggressive remedies. He ruled that breaking up the company would be complex and risky, allowing Google to retain control of its browser and continue paying partners like Apple to secure default placement for search services.

Google did not escape unscathed. The court ordered it to share a limited set of search data with competitors at cost. However, the requirement was narrower than regulators had sought and is unlikely to significantly strengthen rivals. Google is also appealing the monopoly finding itself.

Similar signals have emerged in the ad tech case. Although the government is seeking a break-up, the presiding judge has indicated a preference for behavioural remedies or settlement rather than forcing a structural split, particularly given the likelihood of lengthy appeals.

The Epic Games dispute has brought more immediate consequences. Google has been required to permit alternative payment methods within Android apps and, in time, list competing app stores. Even here, Google has attempted to soften the impact through a proposed global settlement that would lower fees while preserving its control of the Android ecosystem. That agreement still awaits court approval.

Against this legal backdrop, Google has continued to invest heavily in AI while defending its traditional businesses. That strategy appears to be paying off. In October, the company reported quarterly revenue exceeding AUD $150 billion for the first time, with profits of roughly AUD $46 billion. Advertising remains the largest contributor, but Google Cloud generated about AUD $23 billion in revenue, reflecting growing demand for AI-driven services.

Google’s AI efforts have also delivered high-profile wins. Its latest models have performed strongly in video generation, image creation and conversational AI, helping the company stand out in an increasingly crowded field. Unlike many rivals, Google can fund these bets using existing cash flows rather than relying on external capital.

Hardware remains a smaller part of the picture, but there have been signs of progress. Recent Pixel devices introduced features ahead of other Android manufacturers, marking a shift toward greater hardware leadership.

Challenges remain. None of Google’s legal cases are fully resolved, and future rulings could still force painful changes. The AI sector also carries financial risk, with long-term returns far from guaranteed. Still, compared with the bleak outlook of early 2025, Google ends the year in a far stronger position.

For a company that began the year fearing dismemberment, finishing it intact and setting new profit records is a result few would have predicted.