Alphabet reported fourth-quarter revenue of $113.8 billion, up 18% year-over-year, and non-GAAP EPS of $2.82, a 31% increase over the prior year’s quarter. These results beat consensus forecasts, driven by robust demand across Search and YouTube. Search revenue grew 17% on strength in retail, finance and health verticals, while YouTube’s ad and subscription revenues contributed to a record quarterly performance, pushing annualized YouTube revenue above $60 billion.

Google Cloud revenue surged 48% year-over-year to $17.7 billion, outpacing Microsoft Azure for the first time in several years. The segment’s backlog doubled to $240 billion, reflecting strong enterprise demand for AI infrastructure and services. Management highlighted Gemini Enterprise’s rapid adoption, with over 8 million paid seats sold in four months, and 120,000 organizations now using the platform, underscoring continued upside in cloud-based AI offerings.

Alphabet guided 2026 capital expenditures to a range of $175 billion to $185 billion, more than double the $91.45 billion spent in 2025. The planned ramp is aimed at alleviating ongoing compute constraints for AI training and inference, as well as funding data centers and networking capacity. In extended trading, shares fell as much as 3% before trimming losses, reflecting investor sensitivity to heavy infrastructure spending despite strong top-line momentum.

Broadcom shares jumped over 6% in after-hours trading after the capex announcement, as the chip maker supplies custom AI accelerators to Alphabet. Elsewhere, Alphabet confirmed deepening collaboration with Apple, powering the next-generation Siri with Gemini models across Apple’s 2.5 billion active devices. CEO Sundar Pichai noted Gemini’s consumer app now serves 750 million monthly users, up 100 million since November, reinforcing Alphabet’s leadership in scalable AI deployments.