Alphabet Google goes all in on AI after impressive earning

In its fourth quarter earnings report, Google parent company Alphabet forecast 2026 capital expenditures of $180 billion at the midpoint, well above the $119.5 billion projected by analysts tracked by Bloomberg.

the company's fourth quarter financial results beat Wall Street's estimates on the top and bottom lines. Fourth quarter revenue climbed 18% to $113.8 billion from the year-ago period, ahead of the $111.4 billion expected by analysts. The tech giant's earnings per share rose to $2.82 from $2.15 in the previous year, also higher than the $2.65 projected.

The jump in revenue was spurred by a 48% spike in Google Cloud revenue to $17.7 billion, more than the $16.2 billion expected by analysts.

Google Services — the segment including ad revenue from Search and YouTube, which accounts for the majority of Alphabet's revenue — saw revenue climb a more modest 14% from the previous year to $95.9 billion, higher than the projected $94.9 billion, per Bloomberg consensus estimates.

Alphabet's fourth quarter capex of $27.9 billion was slightly less than the expected $28.2 billion for the period, per Bloomberg estimates.

Sources: Yahoo Finance