This report does not constitute a rating action. What's new: Alphabet's results for the second quarter of 2026 were largely in line with our expectations. Overall revenue grew 24%, strongly aided by 82% growth in cloud revenue. Operating income also improved 24% as the company kept cost growth roughly consistent with revenue expansion. Key takeaways include: Updated capital expenditure (capex) guidance of $195 billion-$205 billion for 2026, an increase of $15 billion from the previous quarter?s guidance. The company reiterated its expectations for 2027 capex sustainably higher than 2026. Disclosed that the value of the SpaceX stock that it owns is $94 billion as of June 30, 2026. We do not include this stock in our current leverage calculation. Restrictions
