Google: very impressive. Higher Capex, higher growth & margins

AI investments are bearing fruits. Revenue growth is accelerating, margins moving up. Sharp increase in 2026 Capex suggests accelerating growth & margins in 2026-27.

Google Services: higher revenue growth (year-ago 10%, 4Q25: 14% YoY) and Operating Margins upside (year-ago 39%, 4Q25: now 42%).

Cloud: accelerated revenue growth (year-ago 30%, 4Q25: 48% YoY) and Operating Margins expansion (year-ago 18%, 4Q25: now 30%).

As usual, no guidance. Capex will double in 2026 to $180bn. That’s a record high ~37% of revenues, hence a very major bet on accelerating growth / margins.

Consensus is reasonable-to-low with 14% revenue growth and 21% Operating Profit growth in 2026, 13% and 16% in 2027. I expect upward revisions. Valuations are high but growth is accelerating.