Alphabet (GOOGL) shares fell 1.2% over the six months to October 21, 2026, while the S&P 500 gained 9.3%, even as Google Cloud grew quickly: second-quarter fiscal 2026 revenue reached $24.8 billion, up 82%, and operating margin rose to 35.6% from 20.7%. Cloud's backlog reached $514 billion at the end of June 2026. However, Alphabet spent $44.9 billion on capital projects in the quarter, more than the $39.1 billion of operating cash flow, and raised its 2026 capex guidance to $195–205 billion from $180–190 billion. The main risks cited are limited capacity and costs rising faster than backlog converts to revenue, with most revenue from TPU system deals expected in 2027. Alphabet's third-quarter report is expected on October 28, 2026.
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.3T |
| Close on 10/21/2026 | 334.67 |
| Change that session | -1.65% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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