Google Inc. today announced its financial results for the quarter ended December 31, 2010. The company reported a significant increase in both revenue and net income compared to the same period last year.

Key Financial Highlights

• Revenue reached $8.44 billion, a 26% increase year-over-year.
• Net income was $2.54 billion, or $7.81 per share, compared to $1.97 billion, or $6.13 per share, in the fourth quarter of 2009.
• Advertising revenue accounted for the majority of the company’s earnings, with a substantial contribution from mobile advertising.

Operational Highlights

Google continued to innovate across its product lines, with significant advancements in search, Android, and cloud computing.

• Android activations continued to grow exponentially, solidifying its position as a leading mobile operating system.
• The company made strategic acquisitions to expand its capabilities in key areas such as social networking and display advertising.

Executive Commentary

“We ended 2010 with a strong performance, reflecting the continued growth of our core businesses and the success of our newer initiatives,” said Larry Page, CEO of Google. “We are excited about the opportunities ahead and remain focused on delivering innovative products and services to our users and partners.”