Alphabet's shares were down in premarket trading on Thursday after the company beat Wall Street's expectations on earnings and revenue, with AI spending projected to increase hugely this year.
The Google parent shed 4.9% in premarket as of 7:50 a.m. ET, after closing nearly 2% lower on Wednesday. After the bell, Alphabet reported fourth-quarter revenue of $113.83 billion, above the $111.43 billion estimate from analysts polled by LSEG.
Its Google Cloud division earned $17.66 billion in revenue versus a forecast of $16.18 billion, according to Street Account. YouTube Advertising earned $11.38 billion in revenue versus the estimated $11.84 billion.
The tech giant said it would significantly increase its 2026 capital expenditure to between $175 billion and $185 billion — more than double its 2025 spend. A significant portion of capex spending would go towards investing in AI compute capacity for Google DeepMind.