"Going into the Wednesday report, online finance communities seemed to be putting a lot behind results from the Google parent. Up 70% over the last six months, the search and advertising giant has become the mega-cap tech momentum trade. There had been pockets of panic that if Alphabet's earnings didn't deliver, it would exacerbate a recent tech selloff which has found footing in the media and given adherents some jitters."
"Alphabet's Q4 earnings at a glance As we covered in our daily Stock Market Today liveblog, the results went above and beyond on the top and bottom line: Q4 Revenue: $113.83 billion (est. $111.4 billion)Cloud Revenue: $17.66 billion (est. $16.2 billion) Q4 EPS: $2.82 (est. $2.65) Really, the only real snags were problems that could be observed industry-wide; namely, spending on AI buildout. Alphabet spent more than 3x more money in the fourth quarter on capital expenditures than analysts expected, while forecasting for even more gobs of money to be spent this year: Q4 Capex: $91.45 billion (est. $28.17) 2026 Capex Forecast: $175 - 185 billion (est. $119.5 billion)"
Alphabet reported Q4 revenue of $113.83 billion and EPS of $2.82, both above Wall Street estimates. Cloud revenue was $17.66 billion, outperforming expectations and contributing to margin strength. Capital expenditures surged, with Q4 capex at $91.45 billion and a 2026 capex forecast of $175–185 billion, driven largely by AI infrastructure buildout. Side businesses such as Waymo showed notable growth, and AI integration strengthened overall market positioning. The stock dipped modestly after the report, reflecting elevated investor expectations, while the results provided some relief after recent tech-sector weakness.
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