Overview
- Fourth-quarter revenue reached $113.8 billion with net income of $34.5 billion, and annual revenue surpassed $400 billion for the first time.
- Google Cloud revenue jumped 48% year over year to about $17.7 billion, pushing the business to an annual run rate above $70 billion.
- Management said roughly 60% of the 2026 capex will fund servers and other fast‑depreciating compute, with the balance for data center construction and networking.
- Sundar Pichai said Alphabet remains supply constrained as it scales AI capacity, citing strong demand across products and services including Gemini.
- Shares fell in extended and premarket trading as investors weighed near‑term margin pressure from the spending ramp despite robust AI‑driven growth metrics, including 750 million monthly Gemini users and 8 million Gemini Enterprise seats.