Alphabet's Quarterly Report Exceeds Expectations, Capital Expenditure This Year Reaches $185 Billion

Odaily News Alphabet (GOOG.O), the parent company of Google, reported Q4 2025 revenue that exceeded expectations, with projected capital expenditure for 2026 estimated between $175 billion and $185 billion, far surpassing investor expectations of $119.5 billion. Google's Q4 revenue reached $113.828 billion, compared to market expectations of $111.375 billion. The company has rapidly improved its Gemini model and fully integrated it across all product lines, an effort requiring substantial investment to support model optimization and meet cloud customer demands. These investments are already showing initial results. Google is supplying up to 1 million dedicated AI chips to Anthropic, solidifying its position as a key infrastructure supplier in the AI field. Simultaneously, Gemini will also provide AI technical support for Apple iPhone's Siri. However, to justify the massive expenditure, Alphabet needs to demonstrate growth momentum in its cloud services and search advertising businesses. The company stated that large-scale investments in the AI field, including new infrastructure, R&D spending, and talent acquisition, are crucial for competing with rivals such as Amazon, Microsoft, and OpenAI.