Google's annual revenue tops $400 billion as AI investments rise

Alphabet reported annual revenue above $400 billion for the first time and said it will nearly double investments, forecasting $175–$185 billion in capital spending for 2026 to meet demand for AI-enabled cloud services.

Alphabet reported annual revenue above $400 billion for the first time and said quarterly revenue rose 18% year‑on‑year. The company highlighted growth in its search, advertising and cloud businesses. It announced plans to nearly double investments and forecast capital spending of $175 billion to $185 billion in 2026. CEO Sundar Pichai said demand for AI-enabled cloud capacity currently outstrips supply. Key figures: - Annual revenue topped $400 billion for the first time. - Quarterly revenue rose 18% year‑on‑year to $113.8 billion, with reported profit of $34.5 billion. - Cloud revenue grew 48% to $17.7 billion; search and advertising produced $82.3 billion and YouTube ads generated $11.4 billion. - The company said it will nearly double investments and expects capital expenditures of $175–$185 billion in 2026 to meet AI-driven demand. - Gemini AI reached about 750 million monthly users and Google reports over 325 million paid subscriptions across services. - The "Other Bets" unit posted a $3.6 billion loss on $370 million in revenue; Waymo raised $16 billion in a funding round valuing it at $126 billion and reported about 15 million annual rides. Summary: Alphabet's revenue performance was driven by its core search and advertising business along with rapid cloud growth, and the company is committing large capital to expand AI infrastructure. It has also notified the court it will appeal a federal ruling on its search business, and it plans substantial spending in 2026 to address demand for AI services.