Alphabet achieved remarkable fourth-quarter revenues of $113.8 billion, reflecting an 18% year-over-year growth, despite a downturn in the software and AI stock sectors. The tech giant's net income reached $34.5 billion, translating to diluted earnings per share of $2.82, marking a robust conclusion to 2025 with annual revenues surpassing $400 billion for the first time.
CEO Sundar Pichai pointed to the launch of Gemini 3 as a pivotal moment for the company, with first-party models processing over 10 billion tokens per minute and the Gemini App now boasting more than 750 million monthly active users. However, this success comes amid a broader market sentiment shift, with notable declines in technology stocks and indexes.
The S&P 500 software index has plummeted approximately 13% in the past week, resulting in significant losses for investors. As Alphabet plans to nearly double its capital expenditures to between $175 billion and $185 billion in 2026, concerns about immediate returns and rising sector costs have heightened investor anxiety, despite the company's strong fundamentals.