Alphabet ups 2026 capex to as much as $190 billion, expects to 'significantly increase' in 2027
Alphabet reported first-quarter revenue of $109.9 billion, exceeding expectations and marking its highest year-over-year growth since 2022, driven by strong performance in Google Cloud and AI adoption. The company raised its 2026 capital expenditure forecast to $180 billion–$190 billion and anticipates a significant increase in 2027 spending as it invests heavily in AI and cloud infrastructure. Despite near-term compute constraints limiting cloud revenue, Alphabet highlighted growing demand for its enterprise AI solutions, including Gemini Enterprise, which saw a 40% increase in paid monthly active users.
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Alphabet reported first-quarter earnings after the bell Wednesday, showing revenue that topped expectations boosted by its surging cloud business. Shares climbed following the report.Earnings per share: $5.11 Revenue: $109.9 billion vs $107.2 billion expected by analysts polled by LSEGIt is unclear if EPS was comparable to the $2.63 expected by analysts polled by LSEG.Wall Street was also watching several other numbers in the report:Google Cloud: $20.02 billion vs. $18.05 billion estimated, according to StreetAccountYouTube advertising: $9.88 billion vs. $9.99 billion estimated, according to StreetAccount Traffic acquisition costs: $15.22 billion vs.
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