Alphabet stock jumped 4% Thursday after the company reported third-quarter financial results that beat across the board and increased its capital expenditures for the year.
The Google parent company bumped its spending expectations on artificial intelligence infrastructure to $91-$93 billion from $85 billion the prior quarter, noting continued strong cloud demand.
CEO Sundar Pichai said the company had a $155 billion backlog for Google Cloud at the end of the quarter.
"Looking out to 2026, we expect a significant increase in CapEx," Chief Financial Officer Anat Ashkenazi told investors on the earnings call Wednesday.
Deutsche Bank said in a note that there was "virtually no hair on the print," and wrote that the setup coming into the report was not easy, with the stock up 43% since Alphabet issued second-quarter earnings.
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Alphabet reported third-quarter earnings of $3.10 adj. per share on revenue of $102.35 billion in revenue, its first quarter ever with revenue above the $100 billion benchmark.
Analysts polled by LSEG expected earnings of $2.33 per share with revenue of $99.89 billion.