S&P Dow Jones Indices adds Alphabet to the Dow, citing its $36B AI capex push, while Verizon exits despite strong cash flow.
S&P Dow Jones Indices removed Verizon from the Dow Jones Industrial Average, replacing it with Alphabet as the index shifts toward high-growth AI exposure. Alphabet’s Q1 2026 capex doubled year-over-year to $36 billion, driven by AI infrastructure investments, while free cash flow fell 47% to $10.12 billion.
Alphabet’s Google Cloud revenue surged 63% to $20.03 billion, with a backlog exceeding $460 billion. Verizon, meanwhile, reported its first positive Q1 postpaid phone net adds in over a decade, alongside $21.5 billion in free cash flow guidance, appealing to income-focused investors.
The swap highlights contrasting strategies: Alphabet’s aggressive AI expansion versus Verizon’s operational turnaround and dividend stability. Both companies reported results within 48 hours, underscoring the divergence in market priorities.