"Alphabet's Q4 2025 revenue hit $113.83 billion, up 18% YoY, with EPS of $2.82 beating consensus by 7.22%. The headline number was Google Cloud, which grew 48% YoY to $17.66 billion as segment operating income more than doubled to $5.31 billion."
"Management stunned investors with 2026 capex guidance of $175 billion to $185 billion, a sharp step up from $91.4 billion in 2025. This creates a central tension between revenue acceleration and aggressive AI infrastructure investment."
"The Q1 2025 comparison is messy, as year-ago revenue was inflated by roughly $8 billion in unrealized equity gains. Clean operating EPS growth should look stronger than the headline suggests."
Alphabet's first-quarter results are expected to reflect significant growth, particularly in Google Cloud, which saw a 48% year-over-year increase. The company reported a record $400 billion in revenue for the previous year, with Q4 2025 revenue reaching $113.83 billion. Investors are keenly observing the capex guidance of $175 billion to $185 billion for 2026, which indicates a strong commitment to AI infrastructure. The growth rate of the cloud segment and the management's framing of capex will be critical indicators for investors.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]