Alphabet Achieves Record $100 Billion Revenue, Plans Major Investment in AI

2025-10-31 companies

Mountain View, Thursday, 30 October 2025.
Alphabet Inc. surpasses $100 billion in quarterly revenue, exceeding expectations. Plans for significant 2026 CapEx increase aim to enhance AI infrastructure, highlighting commitment to maintaining technological leadership.

Record-Breaking Revenue Amidst AI Demand

Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google, has reported a groundbreaking achievement by surpassing $100 billion in revenue for the third quarter of 2025. This milestone marks a 16% increase compared to the previous year, driven by significant gains in Google Cloud and YouTube, which respectively saw growth rates of 34% and 15% [1][2]. This achievement not only exceeded Wall Street’s expectations but also underscores Alphabet’s robust performance amid escalating demand for AI solutions [3][4].

Strategic CapEx Plans for 2026

In response to the burgeoning demand for AI services, Alphabet has announced plans to significantly increase its capital expenditures in 2026. The company aims to bolster its AI infrastructure to manage the growing customer backlog and enhance its competitive position in the technology sector. This planned CapEx surge follows a revision of its 2025 forecast to between $91 billion and $93 billion, up from earlier projections [1][5]. Executives, including CFO Anat Ashkenazi, have indicated that more details will be disclosed in the upcoming fourth-quarter earnings call [1][6].

AI Expansion and Market Position

Alphabet’s strategic focus on AI is further evidenced by its flagship AI app, Gemini, which has experienced a substantial increase in user base, reaching over 650 million monthly active users. This is a significant rise from the previous quarter’s 450 million users, highlighting the growing adoption of AI-driven applications [1][7]. Additionally, Google Cloud’s backlog has surged by 46% quarter-over-quarter, with an increase in $1 billion deals secured in the last nine months, outpacing the previous two years combined [1][2].

Implications for Investors

The robust financial performance and strategic investments have positively impacted Alphabet’s stock, which saw a notable increase in after-hours trading following the earnings announcement. The company’s diversification efforts, particularly in AI and cloud services, have played a crucial role in this success, reinforcing its resilience against regulatory pressures and competitive challenges [3][5]. As Alphabet continues to navigate the evolving technological landscape, its focus on AI infrastructure and innovation is expected to sustain its growth trajectory [1][4].

Sources

Google capital expenditure