Google beats Q4 earnings, shares edge lower on AI spending plans
Alphabet reported record Q4 earnings, but shares fell due to plans for significantly increased AI-related capital expenditures.Summary
Google's parent company, Alphabet, announced record fourth-quarter earnings that surpassed Wall Street expectations, with revenue rising 18% year-over-year to nearly $114 billion and net income climbing 30% to $34.5 billion. Full-year revenue exceeded $400 billion for the first time. Growth was driven by advertising, cloud services, and subscriptions, with Google Cloud reaching a $70 billion annual run rate. Momentum in artificial intelligence was highlighted, with the Gemini AI app surpassing 750 million users. However, despite the strong results, investor sentiment soured when the company disclosed aggressive investment plans, projecting 2026 capital expenditures between $175 billion and $185 billion, nearly double the 2025 spending. Consequently, shares initially rose in after-hours trading but reversed course to trade lower.
(Source：Crypto Briefing)