Alphabet’s Shares Gains After Hours After Reporting $400B+ Annual Revenue For The First Time - Here’s More Details

• The technology heavyweight increased its capex outlook in the range of $175 to $185 billion for FY 2026, way above analysts’ consensus of $120 billion.
• The company’s diluted earnings per share rose 31% to $2.82 per share, comfortably beating Wall Street consensus of $2.64 per share. 
• Alphabet said that it will soon launch new YouTube TV plans, bringing more choice and flexibility to subscribers with over 10 genre specific packages.

Alphabet (GOOGL) reported a 18% jump in its fourth quarter revenue on Wednesday helped by strong momentum across the business and acceleration in growth in both Google Services and Google Cloud.

At the time of writing shares gained more than 1% after market hours.

“We’re seeing our AI investments and infrastructure drive revenue and growth across the board. To meet customer demand and capitalize on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185 billion,"said Sundar Pichai, CEO of Alphabet and Google. 

Q4 Results

Consolidated Alphabet revenues increased 18% to $113.8 billion in the fourth quarter, the company said. It beat analysts’ estimates of $111.5 billion, as per data from fiscal.ai. 

The company’s diluted earnings per share rose 31% to $2.82 per share, comfortably beating Wall Street consensus of $2.64 per share. 

“It was a tremendous quarter for Alphabet and annual revenues exceeded $400 billion for the first time. The launch of Gemini 3 was a major milestone and we have great momentum,” Pichai added. 

“Search saw more usage in Q4 than ever before, as AI continues to drive an expansionary moment, we have executed with incredible speed,” Pichai said in an analyst call. 

YouTube Strength

YouTube revenue across ads and subscriptions exceeded $60 billion for the full year 2025. In the fourth quarter it jumped to $11.4 billion, compared to $10.5 billion from the year-ago quarter. 

Pichai said that the company continues to see strong subscription revenue growth across YouTube, particularly YouTube Music premium. The firm will soon launch new YouTube TV plans, bringing more choice and flexibility to subscribers with over 10 genre specific packages.

YouTube continues to be the number one streamer in the US for nearly three years, according to Nielsen.

Outlook

The technology heavyweight increased its capex outlook in the range of $175 to $185 billion for FY 2026, way above analysts’ consensus of $120 billion. 

The company said the significant increase in its investments in technical infrastructure will continue to put pressure on its Profit and Loss statement in the form of higher depreciation expense and related data centers. It expects the depreciation growth rate in 2026 to accelerate in Q1’26 and meaningfully increase for the full year.

Alphabet said it is planning to continue hiring in key investment areas such as AI and cloud.

How Did Stocktwits Users React?

Retail sentiment around GOOGL trended in ‘extremely bullish’ territory amid ‘extremely high’message volume. 

One bullish user on GOOGL’s after hours stock movement said  ‘we saw a knee-jerk selloff initially because traders were spooked by Google’s big capex spending. But then traders looked at the numbers and realized Google might actually know what it is doing. Go deep, go long, get rich’.

Another user termed Alphabet as ‘Goat’

GOOGL shares have gained 64% over the past 12 months. 

Also Read: SNAP Stock Rally After Hours As Q4 Revenue Growth Impresses Investors

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