Alphabet reported fourth-quarter earnings that surpassed Wall Street forecasts, with quarterly revenue reaching $113.8 billion, above estimates of $111 billion (05/02).

The company also announced that its annual revenue had exceeded $400 billion for the first time. Strong performance in search advertising and Google Cloud contributed to the results.

Google Plans Record Capital Expenditure in 2026

Despite strong earnings, Google’s stock fell after the company revealed plans to nearly double its capital expenditure in 2026, estimating spending between $175 billion and $185 billion.

This increase from last year’s $90 billion will fund data centers, chips, construction materials, and other infrastructure needed to support AI initiatives.

Gemini Sees Significant User Growth

Google’s Gemini app now has over 750 million monthly active users, an increase of 100 million since October last year.

“We are also seeing significantly higher engagement per user, especially since the launch of Gemini 3 in December,” Google CEO Sundar Pichai said.

However, the growth rate is slower than the 200 million users gained in Q3, boosted by the Nano Banana image generator.

Subscriptions and Cloud Revenue Expand

Alphabet now has more than 325 million paid subscriptions across consumer services, with Google One and YouTube Premium leading the growth.

Google Cloud revenue rose 48% year over year, making it a key driver of overall earnings. The subscription total matches Netflix’s latest reported subscribers, highlighting Google’s strong consumer reach.

CEO Sundar Pichai Comments on SaaS Market

Addressing concerns about AI disrupting software-as-a-service companies, Pichai said the reaction may be exaggerated.

“I think it is an enabling tool, just like it has been an enabling tool for us across our products and services, be it Search, YouTube, etc,” he said.

Companies “seizing the moment” will “have the same opportunity ahead.”

PHOTO: UNSPLASH

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].