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Alphabet Heads Into Q4 Report With Record Valuation and Big AI Bets

Investors weigh AI monetization against soaring capital needs with a volatile reaction priced in.

Overview

  • Alphabet reports fourth-quarter 2025 results after the close on Feb. 4, with Wall Street expecting about $111.3–$111.4 billion in revenue and roughly $2.64 in EPS.
  • Options pricing points to a move of more than 5% following the release, signaling elevated expectations for the print and guidance.
  • Shares briefly touched a record near $350, putting the market value around $4.15 trillion as traders position around Search, YouTube, and Cloud performance.
  • AI rollout remains a key focus, with AI Mode topping 75 million daily users, AI Overviews and AI Max enhancing search and advertising, and a multiyear Apple deal to use Gemini in an upgraded Siri.
  • Google Cloud shows momentum with 34% year-over-year Q3 revenue growth and a backlog up 82% to $155 billion, even as Alphabet’s AI-driven capital spending hit $91–93 billion in 2025 with higher levels guided for 2026, and Waymo raised $16 billion at a $126 billion valuation.