Alphabet reported record-breaking fourth-quarter 2025 revenues of $113.8 billion. Net income climbed 30% to $34.5 billion, supported by 48% growth in the cloud computing division. The Gemini AI model expanded its user base to 750 million people during the quarter.
Alphabet plans to increase 2026 capital expenditures to a range between $175 billion and $185 billion. This target represents a near doubling of the previous year's spending. The company will direct these funds toward data centers and infrastructure to maintain its leadership in artificial intelligence.
Investor reaction remained cautious following the announcement of the heavy spending requirements. Markets raised concerns regarding capital discipline and the specific timing of returns on AI investments. The stock faced selling pressure as investors weighed the long-term infrastructure strategy against the immediate financial outlay.