Alphabet's quarterly report beat expectations; capital expenditures this year reach $185 billion.

Alphabet, the parent company of Google (GOOG.O), reported better-than-expected revenue for the fourth quarter of 2025, and its capital expenditures for 2026 are projected to be between $175 billion and $185 billion, far exceeding investor expectations of $119.5 billion. Google's Q4 revenue was $113.828 billion, while the market expected $111.375 billion. The company has rapidly improved its Gemini model and fully integrated it across its product lines, an effort requiring significant investment to support model optimization and meet the needs of cloud customers. These investments are already showing results. Google is supplying up to 1 million dedicated AI chips to Anthropic, solidifying its position as a key infrastructure provider in the AI ​​field. Gemini will also provide AI technology support for Siri on Apple's iPhone. However, to justify these massive expenditures, Alphabet needs to demonstrate the growth momentum of its cloud services and search advertising businesses. The company stated that its large-scale investments in AI, including new infrastructure, R&D spending, and talent acquisition, are crucial to competing with rivals such as Amazon, Microsoft, and OpenAI.