"The company reported earnings before certain costs such as stock compensation of $2.82 per share, easily beating the analyst consensus estimate of $2.63 per share. Revenue for the period came to $113.83 billion, up 18% from a year earlier and above Wall Street's target of $111.43 billion. All told, Alphabet generated $34.45 billion in net income, up from $26.53 billion one year ago."
"The most concerning number was not Alphabet's top or bottom line but its capital expenditure forecast for fiscal 2026. The company said in October that it was planning a "significant increase" in spending in the new year, and that wasn't a lie. Today, it forecast capex in the range of $175 billion to $185 billion, which is more than double its 2025 spending."
"Alphabet Chief Financial Officer Anat Ashkenazi told analysts on a conference call that most of the capex will go toward investing in artificial intelligence compute capacity for Google DeepMind and meeting "significant cloud customer demand." In addition, some of the money will go toward strategic investments in the company's "Other Bets" segment and on driving higher returns for advertisers. Despite Ashkenazi's assurances that the increased spending is a good thing, investors reacted negatively to the forecast, and the company's stock was down more than 2% in late trading."
Alphabet reported fourth-quarter earnings before certain costs of $2.82 per share, exceeding analyst consensus of $2.63. Revenue totaled $113.83 billion, up 18% year-over-year and above Wall Street's $111.43 billion target. Net income reached $34.45 billion, up from $26.53 billion a year earlier. The company forecast fiscal 2026 capital expenditures of $175 billion to $185 billion, more than double 2025 spending. Most of the capex will fund AI compute capacity for Google DeepMind and increased cloud demand, with additional allocations for Other Bets and advertiser returns. Google Search ad revenue rose 17%, while YouTube ad sales slightly missed estimates.
Read at SiliconANGLE
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