Google’s parent company, Alphabet, beat Wall Street expectations on Wednesday, and is planning a sharp increase in capital spending in 2026 as it continues to invest deeply in AI infrastructure.
Alphabet on Wednesday reported profit of $34.5bn in the recently ended quarter, as revenue from cloud computing soared 48%.
The company also forecast spending between $175bn and $185bn this year, a figure much higher than analysts’ expectations of roughly $115bn.
In an earnings call, investors pressed Alphabet’s chief executive, Sundar Pichai, on the significant increase. “We’ve been supply constrained, even as we’ve been ramping up our capacity. Obviously, our CapEx spend this year is an eye towards the future,” Pichai said, in response. “We are constantly planning for the long-term.” Pichai added that he expects Google to “go through the year in a supply-constrained way”.
Källa: Google parent earnings beat projections amid plans to invest deeply in AI
