Alphabet reported Q4 2026 revenue of $97.23 billion. This performance exceeded analyst consensus by $2.03 billion. The company recorded 17% growth in its Search division. The Gemini AI platform reached 750 million monthly active users.
Management issued 2026 capital expenditure guidance between $175 billion and $185 billion. This forecast exceeds analyst expectations by approximately $65.5 billion. The projected spending surpasses Alphabet’s total capital expenditures from the previous three years combined. Investors expressed concern regarding immediate cash flow impacts and the long-term timeline for AI returns on investment.
Alphabet shares fell as much as 7% intraday on February 5. The stock closed the session at $331.25, representing a 0.54% decline. Shares traded at $332.00 in the after-hours session, up 0.23%. The aggressive spending outlook pressured broader technology sector sentiment despite Alphabet's documented AI leadership.