Google’s quarterly results paint a picture of an internet powerhouse getting stronger in AI age :: WRAL.com
Publish Date: 2026-02-04 17:19:00
Source Domain: www.wral.com
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Google’s latest quarterly report showed three consecutive quarters of over 10% growth in its digital ad sales and more than 30% growth in AI services.
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Alphabet’s fourth-quarter profit increased by 30% to $34.5 billion, while revenue rose 18% to $113.8 billion, surpassing analyst expectations.
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The strong performance of Google’s core search and advertising sectors combined with growth in its AI division has boosted Alphabet’s stock price by nearly 60% over the past five months, giving it a $4 trillion market valuation.
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Apple has turned to Google for AI enhancement, signing a deal to incorporate Google’s Gemini technology into its Siri assistant.
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Google is embedding more of its Gemini AI in search, Gmail, and Chrome to fend off competition from newer players like OpenAI and Anthropic.
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To combat competition, Alphabet has increased its capital expenditure on AI from $91 billion last year to an expected higher budget this year.
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Digital ad sales grew by 14% to $82.3 billion while Google Cloud services saw a 48% increase to $17.7 billion in the fourth quarter.