Alphabet Reports Strong Q4 Earnings Amid High 2026 Capital Expenditure Forecast

Alphabet reported stronger-than-expected Q4 earnings with revenue of $113.8 billion and earnings per share of $2.82, driven by growth in Search, advertising, and Google Cloud. Despite exceeding revenue forecasts, the stock fell sharply due to a forecasted $185 billion capital expenditure in 2026, nearly doubling prior spending and raising concerns about margins and profitability. CEO Sundar Pichai emphasized that these investments in AI and infrastructure are crucial for future growth amid a competitive digital advertising environment.