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

Reuters05:13
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

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$113.828 bln

$111.43 bln (38 Analysts)

Q4 EPS

$2.82

Q4 Net Income

$34.46 bln

Q4 Dividend

$0.21

Q4 Operating Margin

32.00%

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment