Google parent Alphabet recorded a 24% year-over-year revenue surge to $119.8 billion in its latest quarter.
In its earnings report, the company raised its 2026 capital expenditure outlook to $195 billion-$205 billion from $190 billion, reflecting increased investment in AI expansion.
Despite investor concerns over rising AI spending, Alphabet said Google Cloud’s record quarter shows the investments are paying off. The division’s revenue jumped 82% year over year to $24.77 billion, its strongest quarter ever.
Advertising remained the company’s biggest revenue driver, with Google Ads benefiting from strong YouTube advertising during the World Cup.
CEO Sundar Pichai highlighted that AI investments are redefining the entire business. Analysts note that the Gemini chatbot is approaching 1 billion users.