Alphabet expects 2026 CapEx to be $175 bln-$185 bln

Overview

• Tech giant's Q4 revenue grew 18% yr/yr

• Net income for Q4 increased 30%, with EPS rising to $2.82

• Google Cloud revenue rose 48% due to AI product demand

Outlook

• Alphabet anticipates 2026 CapEx investments between $175 bln and $185 bln

Result Drivers

• GOOGLE SERVICES - Revenues grew 14% to $95.9 bln, driven by 17% growth in Google Search and subscriptions

• GOOGLE CLOUD - Revenue increased 48% to $17.7 bln, driven by demand for AI infrastructure and enterprise AI solutions

• AI INVESTMENTS - AI products and infrastructure drove growth, with Gemini 3 launch cited as a major milestone

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 52 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Alphabet Inc is $345.16, about 1.6% above its February 3 closing price of $339.71

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 26 three months ago

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