Alphabet's Q4 beats expectations, but spending forecast worries investors
Alphabet (Google's parent) just dropped its Q4 2025 results, pulling in $113.8 billion and beating Wall Street predictions.
Earnings per share also topped expectations at $2.82.
Cloud revenue soars 48%
Cloud revenue soared 48%, helping push annual revenue past $400 billion.
To keep up with demand (and the AI boom), Alphabet forecasted spending between $175 billion and $185 billion this year—way more than analysts guessed.
Gemini's growth and Apple's Siri integration
CEO Sundar Pichai says these investments are all about supporting our long-term growth and bringing new tech to users.
Gemini, Alphabet's AI model, is set to work with Apple's Siri after a January deal—helping boost Alphabet's value to $4 trillion and reaching 750 million monthly users.
AI race heats up with Meta's increased spending
With Meta also ramping up its AI spending by 73%, competition is fierce.
But for now, Alphabet looks set to stay ahead with Gemini leading the charge—even as everyone keeps an eye on whether profits can keep pace with those massive investments.