Alphabet's quarterly report exceeds expectations, with capital expenditures reaching $185 billion this year

2026-02-04 23:01:12

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Odaily Planet Daily News: Google (GOOG.O) parent company Alphabet’s Q4 2025 revenue exceeded expectations, with capital expenditures in 2026 projected to be between $175 billion and $185 billion, far surpassing investor expectations of $119.5 billion. Google’s Q4 revenue reached $113.828 billion, compared to the market expectation of $111.375 billion. The company has rapidly improved the Gemini model and fully integrated it into various product lines, an effort that requires substantial investment to support model optimization and meet cloud customer demands. These investments are already beginning to show results. Google is supplying up to 1 million dedicated AI chips to Anthropic, strengthening its position as a key infrastructure provider in the AI field. Meanwhile, Gemini will also provide AI technology support for Siri on Apple iPhone. However, to justify the massive spending, Alphabet needs to demonstrate growth momentum in its cloud services and search advertising businesses. The company stated that large-scale investments in AI, including building new infrastructure, R&D, and talent acquisition, are crucial for competing with rivals like Amazon, Microsoft, and OpenAI.

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