Alphabet lifts capex to USD93b as earnings beat forecasts
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The news: Google’s big tech parent Alphabet beat Wall Street expectations for third-quarter earnings, driven by growth in its cloud and advertising businesses.
Alphabet also lifted its capital expenditure forecast to as much as USD93 billion ($141.5 billion) for the year, as it ramps up investment in artificial intelligence.
The numbers: Total revenue reached USD102.35 billion, exceeding analyst estimates compiled by LSEG, while net income rose 33% from a year earlier.
Google Cloud continued to be one of Alphabet’s fastest-growing segments, supported by enterprise demand for AI infrastructure and data analytics, with revenue surpassing projections.
Shares rose as much as 7.5% in extended trading after the result.
The context: The beat comes amid rising competitive pressure in AI and search, with competitors Microsoft and OpenAI last week launching their new browser Atlas, targeting Google’s core business, and as Alphabet ramps up record AI spending to maintain its edge against rivals.
The sources: Alphabet , The Wall Street Journal
