Company forecasts record capital expenditures amid 24% revenue growth and $514 billion cloud backlog in Q2 2026.
Alphabet announced plans to invest $195 billion to $205 billion in capital expenditures for 2026, citing expansion of third-party capacity. The move follows a 24% year-over-year revenue increase in Q2 2026, driven by strong performance in Search, YouTube ads, and Cloud.
Cloud revenue surged 82%, while the segment’s backlog reached $514 billion. Search and Other revenue grew 17%, and YouTube ads climbed 13%. The company’s growth aligns with prior quarters, reflecting sustained demand for digital advertising and cloud services.
Management framed the CapEx increase as a strategic bridge to support long-term infrastructure needs, though no immediate market reaction was disclosed.