Alphabet forecasts higher than expected 2026 capex, shares whipsaw after hours

Investing.com -- Alphabet on Wednesday beat quarterly top-and-bottom line estimates, while forecasting capital expenditures for 2026 that were significantly above expectations.

Class A shares of the company initially fell more than 3% after hours, only to reverse course and gain about 1% in volatile trading.

Alphabet’s results come at a time when technology stocks and the artificial intelligence trade are under immense pressure. A heavy rotation out of software names due to the perceived impact of AI products on these companies, along with renewed concerns over elevated valuations and massive spending plans, has weighed on Wall Street.

The Google-parent, like its megacap rivals, has outlined heavy AI spending ambitions, setting aside billions of dollars for data centers and chips, and pouring money into AI models and platforms.

Alphabet said it expects to spend $175 billion to $185 billion in capital expenditures in 2026, up significantly from 2025. The Street estimate was $119.50 billion.

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