Alphabet Posts Strong Q4, Plans $175–$185B AI Buildout
Alphabet reported $34.5 billion profit in fourth-quarter 2025 and announced $175 billion–$185 billion in 2026 capital spending to expand AI infrastructure.
Overview
Alphabet Inc. reported fourth-quarter 2025 profit of $34.5 billion and revenue of $113.8 billion, and said it will increase 2026 capital expenditures to $175 billion–$185 billion, the company said.
The planned spending follows Google Cloud revenue of $17.7 billion in the quarter, a 48% increase, and digital ad sales of $82.3 billion, up 14%, figures the company released show.
Chief Executive Officer Sundar Pichai said in a statement that "Search saw more usage than ever before, with AI continuing to drive an expansionary moment," the company said.
Alphabet's shares have risen about 60% over the past five months, giving the company a market value near $4 trillion, market data show.
Executives told analysts they expect to remain supply-constrained as capacity ramps and investors will watch whether the $175 billion–$185 billion plan produces long-term returns, Sundar Pichai said.
Analysis
Center-leaning sources frame Google as an ascendant, AI-powered winner by foregrounding strong financial metrics and growth language ("empire", "thriving") while spotlighting corporate-friendly voices; regulatory and investor doubts appear later and are downplayed. Editorial emphasis on massive AI spending as strategic reinforces a pro-growth, market-confidence narrative over skepticism.
Sources (5)
FAQ
Alphabet reported Q4 2025 revenue of $113.8 billion, profit of $34.5 billion, Google Cloud revenue of $17.7 billion (up 48%), and digital ad sales of $82.3 billion (up 14%).
Alphabet plans to spend $175 billion to $185 billion on capital expenditures in 2026, potentially doubling 2025's $91.4 billion spend, focused on AI infrastructure like servers and data centers.
Alphabet's shares fell about 3% in after-hours trading despite beating earnings expectations, as the massive $175-185B capex plan raised concerns about returns amid the AI spending race.
Pichai highlighted supply constraints including compute capacity, power, land, and supply chain issues, emphasizing the need to ramp up efficiently to meet AI demand.
About 60% of capex goes to servers and 40% to data centers and networking, supporting Google DeepMind, user experience improvements, cloud demand, and other strategic investments.
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