Alphabet reported fourth-quarter results on Wednesday, beating expectations as its stock recovered in after-hours trading. Earnings were $2.82 per share on $113.8 billion revenue, and net income rose 30% to $34.5 billion.
Alphabet guided 2026 capital spending of $175 billion to $185 billion, nearly double its 2025 plan (Ed. note: this nearly doubles prior guidance). Shares first fell about 7% then recovered to close down about 2%.
Google Cloud revenue rose 48% to $17.7 billion, with operating margin at 30.1%. The company said the Gemini platform reached 750 million monthly active users, supporting AI monetization gains.
Search revenue increased 17% as AI features boosted engagement. YouTube ad revenue was $11.4 billion, and Services revenue totaled $95.9 billion, lifting annual revenue past $400 billion.
Sundar Pichai said “We’re seeing our AI investments and infrastructure drive revenue and growth across the board. To meet customer demand and capitalize on the growing opportunities ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185 billion.” CFO Anat Ashkenazi said “Alphabet will make its 2026 investments in a way that maintains a very healthy financial position for the organization.”
