Alphabet Q4 Beats with $113.8B Revenue, 48% Cloud Growth; Guides $175–185B Capex
Alphabet reported Q4 revenue of $113.8B, powered by 48% Google Cloud growth, $60B+ YouTube annual revenue, and net income of $34.5B (EPS $2.82). The company projected 2026 capital expenditures of $175–185B, nearly doubling last year’s $91B, signaling aggressive AI infrastructure investment that may weigh on free cash flow.
1. Revenue and Profit
Alphabet delivered Q4 revenue of $113.8 billion and net income of $34.5 billion, translating to EPS of $2.82, marking a 30% year-over-year increase in profitability.
2. Segment Growth
Google Cloud revenue rose 48% to $17.7 billion, while YouTube’s ads and subscription revenue surpassed $60 billion annually, underscoring strong enterprise and advertising demand.
3. Capex Guidance
Management announced a 2026 capital expenditure plan of $175–185 billion, nearly twice the prior year’s $91 billion, reflecting heavy AI compute, data center and infrastructure build-out.