“Research and Development The following table presents research and development expenses (in millions, except percentages): Three Months Ended March 31, 2025 2026 Research and development expenses $ 13,556 $ 17,032 Research and development expenses as a percentage of revenues 15 % 16 % Research and development expenses increased $3.5 billion from the three months ended March 31, 2025 to the three months ended March 31, 2026, primarily driven by increases in employee compensation expenses of $2.5 billion and depreciation expense of $506 million.”
“Other Income (Expense), Net The following table presents OI&E (in millions): Three Months Ended March 31, 2025 2026 Interest income $ 1,001 $ 1,381 Interest expense (34) (533) Foreign currency exchange gain (loss), net (106) 146 Gain (loss) on debt securities, net 202 (111) Gain (loss) on equity securities, net 9,758 36,915 Income (loss) and impairment from equity method investments, net (22) 60 Other 384 (142) Other income (expense), net $ 11,183 $ 37,716 OI&E, net increased $26.5 billion from the three months ended March 31, 2025 to the three months ended March 31, 2026, primarily due to increases in net unrealized gains on equity securities resulting from fair value adjustments on non-marketable equity securities.”
“Loss Contingencies We are subject to claims, lawsuits, regulatory and government inquiries and investigations, other proceedings, and consent orders involving competition, intellectual property, data privacy and security, tax and related compliance, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters.”