Capex
← Earnings Calls
01
02
03
04 05 06
Tone
AI
Capex
A1 A2 A3
GOOG
FY2025 Q4
Improving
Alphabet Inc. earnings call
Buzzberg read
CapEx guidance for 2026 jumps to $175-185 billion
Alphabet reported a strong Q4 2025 with revenue accelerating to $113.8B, driven by 17% search growth and 48% cloud growth. Management highlighted massive AI demand, announced a $175-185B CapEx plan for 2026, and revealed key partnerships with Apple and NVIDIA. Total Q4 revenue $113.8B (+18% YoY), EPS $2.82 (+31%).
Buzzberg read CapEx guidance for 2026 jumps to $175-185 billion Alphabet reported a strong Q4 2025 with revenue accelerating to $113.8B, driven by 17% search growth and 48% cloud growth. Management highlighted massive AI demand, announced a $175-185B CapEx plan for 2026, and revealed key partnerships with Apple and NVIDIA. Total Q4 revenue $113.8B (+18% YoY), EPS $2.82 (+31%). Read full analysisCollapse analysis
Alphabet reported a strong Q4 2025 with revenue accelerating to $113.8B, driven by 17% search growth and 48% cloud growth. Management highlighted massive AI demand, announced a $175-185B CapEx plan for 2026, and revealed key partnerships with Apple and NVIDIA. Total Q4 revenue $113.8B (+18% YoY), EPS $2.82 (+31%).
- Cloud revenue $17.7B (+48%), backlog $240B (+55% QoQ).
- CapEx guidance for 2026: $175-185B, nearly double 2025's $91.4B.
- Apple named Google as preferred cloud provider and will develop next-gen models on Gemini.
Revenue$113.896B+11% QoQ
EPS$2.82-2% QoQ
Gross margin59.82%Reported
Operating margin31.61%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
Gemini app reaches 750 million monthly active users
Demand
Google Cloud backlog hits $240 billion, up 55% QoQ
Show 3 more callouts
Monetization
AI mode ads testing underway with direct offers
AI
Cloud AI revenue up nearly 400% year-over-year
Costs
Depreciation growth to meaningfully accelerate in 2026
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $113.896B | +11% QoQ |
| EPS | $2.82 | -2% QoQ |
| Gross margin | 59.82% | Reported |
| Operating margin | 31.61% | Reported |
| Free cash flow | $24.551B | +0% QoQ |
| Capex | $27.851B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $175B–$185B | $180B | Guided |
AI, capex & demand read
Management read
Bullish
Management expressed strong confidence, citing accelerating growth, record backlog, and rapid AI adoption, while framing investments as necessary to meet robust demand.
Management AI read
Management highlighted strong AI momentum across the board, with Gemini 3 driving record adoption, the Gemini app reaching 750 million MAUs, and Google Cloud AI products growing nearly 400% year-over-year. They are also experimenting with AI mode monetization, including new ad formats like direct offers, signaling early steps to capitalize on new AI-driven search experiences.
Investment and capacity
Management significantly raised 2026 CapEx guidance to $175-$185 billion, up from $91.4 billion in 2025, to meet what they describe as exceptionally strong demand and supply constraints. The investments are aimed at AI compute capacity for frontier model development, cloud customer demand, and other strategic bets, with a caveat on supply chain variability.
all 7 named companies below
Companiesreturns since call
Customers
Customers
Sundar Pichai
Deep penetration among top SaaS firms indicates strong enterprise adoption of Gemini, which could drive stickiness and upselling for Google Cloud.
Evidence
“95% of the top 20 and over 80% of the top 100 SaaS companies use Gemini including Salesforce and Shopify”
SHEIN
Customers
Sundar Pichai
Massive user acquisition deal for Gemini in India, expanding Google's consumer AI footprint and driving cloud storage demand.
Evidence
“partner with Reliance Jio to provide over 500 million consumers with an 18-month free trial of our Gemini suite of products and 2 terabyte of cloud storage”
Partners
Partners
Sundar Pichai
Apple selecting Google Cloud as preferred provider and adopting Gemini for next-gen foundation models is a major endorsement, likely increasing Apple's AI infrastructure spend and benefiting Google Cloud's revenue.
Evidence
“collaborating with Apple as their preferred cloud provider and to develop the next generation of Apple Foundation models based on Gemini technology”
Suppliers
Suppliers
Sundar Pichai
Google plans $175-185B CapEx in 2026, nearly doubling 2025's $91.4B, signaling a massive buildout of AI compute infrastructure. — This step-up in spending will drive orders for GPUs, networking, and data center equipment, with NVIDIA as primary GPU supplier and AMZN's AWS a direct competitor.
Evidence
“GPUs from our partner, NVIDIA, who announced at CES that we'll be among the first to offer their latest Vera Rubin GPU platform”
Supply chain
Supply chain
Anat Ashkenazi
Google plans $175-185B CapEx in 2026, nearly doubling 2025's $91.4B, signaling a massive buildout of AI compute infrastructure. — This step-up in spending will drive orders for GPUs, networking, and data center equipment, with NVIDIA as primary GPU supplier and AMZN's AWS a direct competitor.
Evidence
“despite the tight supply environment we're operating in”
External signals
Supply-chain alpha · 3returns since call
Google Cloud is operating in a tight supply environment, constraining growth despite strong demand.
Google plans $175-185B CapEx in 2026, nearly doubling 2025's $91.4B, signaling a massive buildout of AI compute infrastructure.
Evidence
“For the full year 2026, we expect CapEx to be in the range of $175 billion to $185 billion”
Google will be among the first to deploy NVIDIA's Vera Rubin GPU platform, accelerating adoption of next-gen AI hardware.
Evidence
“we'll be among the first to offer their latest Vera Rubin GPU platform”
Methodology & coverage
Management-only analysis. All 7 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.