By Guardian staff reporter
Publication Date: 2026-02-04 22:43:00
Google parent Alphabet beat Wall Street expectations on Wednesday, planning a sharp increase in capital spending in 2026 as the company continues to invest heavily in AI infrastructure.
Alphabet on Wednesday reported a profit of $34.5 billion in its recently completed quarter as cloud computing revenue rose 48%.
The company forecast spending between $175 billion and $185 billion this year, a figure well above analysts’ expectations of around $115 billion.
“We see our AI investments and infrastructure driving revenue and growth across the board,” said Alphabet Chief Executive Sundar Pichai.
Alphabet’s annual revenue exceeded $400 billion for the first time, Pichai added.
The company reported fourth-quarter 2025 revenue of $113.83 billion, beating Wall Street estimates of $111.43 billion. Earnings per share (EPS) also beat Wall Street expectations, with the company reporting earnings per share of $2.82, compared to estimates of $2.63.
The report comes after several months of good news for…
