Overview
- Alphabet reported Q4 2025 revenue of $113.8 billion and earnings of $2.82 per share, exceeding analyst estimates as profit rose 30% to $34.5 billion.
- Google Cloud revenue jumped 48% year over year to about $17.7 billion, reaching roughly a $70 billion annual run rate as capacity constraints persist across the sector.
- Management guided 2026 capital expenditures to $175–$185 billion, nearly doubling 2025’s roughly $91.4 billion as Google expands data centers, servers, and networking for AI.
- Gemini momentum accelerated with over 750 million monthly active users and more than 10 billion tokens processed per minute through direct API use, alongside gains in Search and YouTube.
- Shares moved lower in extended trading as investors weighed the heavier spending path; Other Bets losses continued even as Waymo secured about $16 billion at a roughly $126 billion valuation.