Alphabet Up 70% on 18% Revenue Gain Despite $185B 2026 Capex Plan
Alphabet shares have climbed over 70% in the past year, driven by Q4 2025 revenue growth of 18% and a 48% surge in Google Cloud sales. The stock trades at a P/E of 29 with $127 billion in cash but faces a $175–185 billion capex plan in 2026 that could pressure margins as AI investments mature.
1. Share Price Surge
Alphabet stock has surged over 70% in the last 12 months, reflecting strong investor confidence in its core ad business and growth initiatives in cloud and AI.
2. Financial Strength
In Q4 2025, overall revenue increased 18% year-over-year, with Google Cloud revenue up 48%. The company holds $127 billion in cash and equivalents and trades at a P/E ratio of 29.
3. Elevated Capex Requirements
Management has outlined a $175–185 billion capital expenditure budget for 2026 to expand data centers and AI infrastructure, which could weigh on free cash flow and profitability in the near term.