Alphabet Announces Massive CAPEX Spending in 2026

Alphabet CEO Sundar Pichai said that the company projected 2026 capex of $175 billion to $185 billion, up from $91.4 billion a year ago. Analysts’ average expectations for capex this year were around $115.2 billion.

During the earnings call, Pichai pointed out that there are still capacity constraints across power, land, and supply chains going forward. “We’ve been supply-constrained even as we’ve been ramping up our capacity,” he said.

“Obviously, our capex spend this year is an eye towards the future, and you have to keep in mind some of the time horizons are increasing in the supply chain, et cetera. The demand we are seeing across the board, across our services, what we need to invest in for future work for Google DeepMind, as well as for cloud, I think, is exceptionally strong. I do expect to go through the year in a supply-constrained way.”

In the fourth quarter of 2025, Google Cloud revenue rose by 48% year-on-year to $17.7 billion, driven by an increase in Google Cloud Platform (GCP) across enterprise AI Infrastructure and enterprise AI servers. Advertising revenue came in at $82.2 billion, up 13.5% from a year ago. YouTube advertising revenue increased 9% to $11.3 billion.

Pichai said the company’s Gemini AI app now has more than 750 million monthly active users, up from 650 million in November. “We were able to lower Gemini serving unit costs by 78% over 2025 through model optimisations, efficiency, and utilisation improvements,” he said. The company saw revenue increase 18% to $113.8 billion while net income came in at $34.4 billion, up from $26.5 billion.