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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.3T |
| Close on 10/19/2026 | 344.18 |
| Change that session | +1.05% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Alphabet set for earnings beat as Cloud and AI chips take centre stage
BofA expects Alphabet to post a modest third-quarter earnings beat, with revenue of $111.4 billion and GAAP EPS of $3.07, versus Street estimates of $111.0 billion and $2.98. Cloud growth is seen at 93%, above the 89% consensus, driven by expanding capacity and TPU sales, while Search growth should match the Street's 15% although BofA's checks point to some deceleration. BofA expects operating expenses of $33.5 billion, below the Street's $34.3 billion, and 2026 capital expenditures of about $200 billion, close to consensus. It reiterated its Buy rating, citing differentiated AI assets, proprietary models, custom silicon and broad distribution.
- Alphabet's Cloud Growth, TPU Sales Could Drive Q3 Upside, BofA Says
- Alphabet Stock Slipped After Q2 Earnings. Here's What Investors Need to See in Q3.
Alphabet shares fell about 6% after its second-quarter report, despite revenue rising 24% to $119.8 billion and Google Cloud revenue jumping 82% to $24.8 billion. Investors are growing impatient with heavy AI spending and want evidence of returns, especially after Alphabet raised its full-year capex forecast by $15 billion to a range of $195 billion to $205 billion. Quarterly capex reached $44.9 billion, pushing free cash flow to negative $5.9 billion. The author says the third-quarter report on October 28 is an opportunity to prove the investments pay off, with two areas to watch: Google Cloud's growth and the custom TPU chip business, which began recognising direct chip sales revenue in the second quarter but does not report it separately.
- Prediction: One Major Catalyst Could Send Alphabet Stock to New Highs
According to 24/7 Wall St., Google Cloud revenue grew 82% in Q2, up from 63% in Q1 and 48% in Q4 2025, and its backlog reached $514 billion. Alphabet's Q2 revenue of $119.80 billion rose 24.23% and beat estimates, while operating income climbed 30.38% to $40.77 billion and Cloud's operating margin rose to 35.6%. On the other side, capex doubled to $44.92 billion, pushing free cash flow to -$5.855 billion, long-term debt rose from $46.5B to $98.2B, and buybacks were suspended. The article sets a $437.50 price target with a buy rating, implying 25.17% upside from $349.52 and above the 52-week high of $403.96. It says the Q3 report will show whether the backlog converts to revenue and whether Cloud margins hold.
- Alphabet Looks Better By The Day for This One AI Strategy
The author argues Alphabet stands apart because it owns the full AI stack, from Gemini models and TPU chips to Google Cloud, Search and YouTube. Google Cloud revenue reached $24.77B, up 82% year over year, with backlog above $460 billion, while Search and related revenue rose 17% to $63.27B. Operating income climbed 30.4% to $40.77B, and the Gemini app reached 950 million monthly active users. The piece also flags risks: 2026 capex guidance of $175B-$185B, Q2 free cash flow of -$5.86B, borrowings up from $46.5B to $98.2B, suspended buybacks and a $49.6B equity raise that dilutes shareholders. The author still holds the stock, believing Alphabet owns more of the AI stack than other companies they follow.
- Alphabet's Cloud Surge and AI Dominance Overshadow Capex Fears and Keep Me Buying
The author keeps buying Alphabet (GOOGL) because Google Cloud revenue accelerated each quarter, from 34% growth in Q3 2025 to 82% in Q2 2026, reaching $24.77 billion. Q2 revenue rose 24.23% to $119.80 billion, and operating income climbed 30.38% to $40.77 billion; the author tracks this figure rather than the $9.11 EPS, which was inflated by equity securities gains. The risks cited are capex rising 100.14% to $44.92 billion, which pushed free cash flow to negative $5.86 billion, long-term debt rising to $98.2 billion, and the suspension of buybacks. The author argues demand is still visible in operating cash flow, up 40.8% to $39.07 billion, and in a cloud backlog that nearly doubled to over $460 billion.
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