Google parent earnings beat projections amid plans to invest deeply in AI

Alphabet reports $34.5bn profit and revenue soars 48% in recent quarter as it plans a sharp increase in AI spending Google's parent company, Alphabet, beat Wall Street expectations on Wednesday, and is planning a sharp increase in capital spending in 2026 as it continues to invest deeply in AI infrastructure. Alphabet on Wednesday reported profit of $34.5bn in the recently ended quarter, as revenue from cloud computing soared 48%. In an earnings call, investors pressed Alphabet's chief executive, Sundar Pichai, on the significant increase. "We've been supply constrained, even as we've been ramping up our capacity. Obviously, our CapEx spend this year is an eye towards the future," Pichai said, in response.