"That said, you might not think it to look at the stock, which took a dip after Google announced it planned to double its capital expenditure in 2026, predicting it will spend between $175 billion and $185 billion - far beyond analysts' prior expectations. Some upbeat numbers softened the blow, with Google's search advertising and cloud business running hot. Google announced its annual revenue had exceeded $400 billion for the first time,"
"Let's get the big one out of the way. Google said on Wednesday that it expects capital expenditures of between $175 billion and $185 billion in 2026. That's the money going to data centers, chips, construction materials, and other components needed to build out and support Google's AI efforts. It's a huge figure. Google previously warned that its capex spend would be higher than last year's, when it spent just over $90 billion."
Alphabet exceeded Q4 expectations with quarterly revenue of $113.8 billion and annual revenue surpassing $400 billion for the first time. Google Cloud revenue grew 48% year-over-year and search advertising remained strong. The company forecast significantly higher capital expenditures for 2026, estimating $175–$185 billion to fund data centers, chips, construction materials, and AI infrastructure, compared with just over $90 billion last year. The elevated capex guidance exceeded analyst expectations and contributed to an initial stock dip. Gemini user growth reached over 750 million monthly active users, up 100 million since October.
Read at Business Insider
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