"Google's parent company, Alphabet, beat Wall Street expectations on Wednesday, and is planning a sharp increase in capital spending in 2026 as it continues to invest deeply in AI infrastructure. Alphabet on Wednesday reported profit of $34.5bn in the recently ended quarter, as revenue from cloud computing soared 48%. The company forecast spending between $175bn and $185bn this year, a figure much higher than analysts' expectations of roughly $115bn."
"We're seeing our AI investments and infrastructure drive revenue and growth across the board, Sundar Pichai, Alphabet's chief executive, said. Alphabet's annual revenue exceeded $400bn for the first time, Pichai added. The company reported $113.83bn in revenue for the fourth quarter of 2025, surpassing Wall Street estimates of $111.43bn. Earnings per share (EPS) also beat Wall Street expectations: the company reported $2.82 in EPS, compared with estimates of $2.63."
"The newest version of Gemini, released by Google in November, is considered to be at the forefront of the generative AI industry, a development that has prompted panic at competitor OpenAI. Then in January, Google and Apple announced the company will start using Gemini to power AI features like Siri; the Apple assistant has previously faced criticism for not being as advanced and accurate as its competitors. Google's valuation shot up to $4tn after the deal, making it the second-most-valuable company in the world."
Alphabet reported profit of $34.5bn for the recent quarter and fourth-quarter revenue of $113.83bn, beating estimates. Cloud-computing revenue rose 48% year over year and EPS reached $2.82 versus $2.63 expected. Annual revenue topped $400bn for the first time. The company plans a sharp increase in capital spending in 2026, forecasting $175–$185bn for the year compared with analyst expectations around $115bn, driven by investments in AI infrastructure. Google's Gemini model and a multi-year deal with Apple to power features like Siri helped boost valuation to about $4tn.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]