Alphabet posts 18% revenue jump as AI spending plans surge past estimates
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The news: Google parent Alphabet reported an 18% jump in fourth-quarter revenue and topped market estimates for capex spending in 2026.
The numbers: Alphabet reported an 18% rise in Q4 revenue year on year to USD113.8 billion. Net income climbed 30.2% from USD26.5 billion to USD34.5 billion.
The company said it will spend USD175 billion to USD185 billion in 2026 to "meet customer demand and capitalize on the growing opportunities we have ahead of us". Analysts had expected annual capex of USD119.5 billion, according to Bloomberg data.
The context: Alphabet and Google CEO Sundar Pichai called it a "tremendous" quarter for the group, with annual revenue exceeding USD400 billion for the first time.
He said the Gemini App has grown to over 750 million monthly active users, with AI driving an "expansionary moment" for search.
