GOOG News
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A brilliant result with +30% earnings from-a company this size can print gains like this. The big take away is tehehuge Capex spending-and where is this money going(who gets most of it?).
I trust the CEOs and Sundar is best placed over Dave on the internet insofar as where's a good place to be investing GOOG cash. Again he said on the call-they are constrained and they are making a lot of money from AI.
What we saw today were the extreme PE stocks, Palantir, APP, AMD get a good kicking and they dragged everything else down with it-and after hours the quality came back hard. And what you find is any stocks that have risen very fast will also fall very fast in these scenarios (Parabolic effect) but quality, as I said comes back. the dross does not!
There is a lot of noise/FUD around capital spending on GPUs etc and I have to say it's more an opportunity than a risk. A lot push/pull going on, media influence and weak hands. As always patience and staying the course.
Chief Financial Officer (CFO)
CapEx guidance (most important takeaway)
2026 capital expenditure expected at $175bn–$185bn, a sharp step-up.
Spend will be heavily front-loaded into:
Data centres
Custom silicon
AI compute and networking infrastructure
Cost discipline & margins
CFO acknowledged CapEx intensity but stressed:
Operating margins remain structurally stable (~32%)
AI infrastructure investments are already driving Cloud profitabilityBalance sheet
Highlighted $24.8bn in net debt issuance in late 2025 as deliberate liquidity positioning ahead of peak investment years.
Dividend maintained at $0.21 per share, signalling confidence despite elevated CapEx.
Bottom Line
Alphabet is spending aggressively, especially on AI infrastructure.
Management is not pretending CapEx will normalise soon — 2026 is a heavy year by design.
The tone from both CEO and CFO was confident, almost blunt:
short-term cash intensity is the price of long-term dominance.
Elevated CapEx
Stable margins
Cloud and AI doing the heavy lifting on incremental returns -
Of the $180B 2026 Capex, $110B will do towards racks scale build out, split roughly 50/50 GooG/GCP. I would estimate the following recipients of this cash pile. The clear winners being NVDA/AVGO
