A, the parent company of Google is poised to double its capital spending this year as it continues its run in artificial intelligence, but also records a first-time annual revenue of over 400 billion dollars and a increase in profits.
Alphabet, which posted solid results yesterday after Wall Street closed, surprised analysts by indicating capital expenditures between 175 and 185 billion of dollars this year, well above estimates. The aggressive investment expansion get in a moment in which the and to investors are increasingly concerned about the profits deriving fromartificial intelligence.
Google, however, has managed to show significant progress in its efforts in this field and the Alphabet title has surged 76% since the beginning of 2025. Yesterday the shares of Alphabet They swung wildly after the close, falling more than 6% at one point, before settling down 0,4% as investors weighed theincrease in spending with theincrease in revenues and profits, both beat expectations in the December quarter. Alphabet shares have rallied 61% over the past 12 months, boosting its market capitalization over 4.000 billion of dollars and surpassing Microsoft as the third largest company in the world.
Analysts predict that Alphabet and its Big Tech rivals overall will shell out more than $500 billion in artificial intelligence qthis year. Meta last week increased its capital investment in AI development this year by 73%, while also ecosystem reported record quarterly capital spending.
Google: Our investments are generating revenue and growth across the board.
“We are seeing our investments and infrastructure in the AI space they are generating revenue and growth on all fronts“, the CEO declared yesterday Sundar Pichai to analysts during a conference call.
Alphabet managers stressed that the investments in computing capacity of artificial intelligence (servers, data centers and networking equipment) were key to the company's plans to decide to aim for a capital expenditure compress between 175 and 185 billion of dollars this year, compared to the 91,45 billion dollars of 2025According to data collected by LSEG, analysts on average expected spending of about $115,26 billion this year. Capital expenditures for the fourth quarter rose to $27,9 billion, nearly doubling from $14 billion last year and beating expectations of $27,7 billion.
Solid earnings from advertising divisions and cloud computing
The online search giant reported its second consecutive quarter with more than $100 billion in revenue. sales, pulled by solid profits from advertising divisions as well as cloud computing.
The Net income of the fourth quarter is increased by 30% rcompared to the previous year, reaching $34,5 billion, exceeding analysts' expectations of $31,9 billion. The company achieved a profit of $132 billion for the full year 2025.
Il turnover Revenue rose 18% to $113,8 billion in the three months to the end of December, beating the median estimate of $111,3 billion, according to FactSet data. Annual revenue surpassed $400 billion for the first time.
In particular, the business cloud The company posted stellar growth in the fourth quarter ended in December, with a 48% surge to $17,7 billion, exceeding analysts' expectations. This is the fastest growth rate in over four years. "We've been constrained by supply, even though we've increased our production capacity," Pichai said. "Obviously, our capital spending this year is forward-looking." Pichai added that he expects Alphabet to face continued capacity constraints throughout the year.
Google's core business, research and advertising, grew 17% to $63,1 billion, exceeding estimates of $61,3 billion. YouTube ads increased 9% to $11,4 billion.
