...July 15, 2026 This report does not constitute a rating action. What's new: In our updated forecast ahead of Alphabet Inc.'s second-quarter 2026 earnings, we expect its S&P Global Ratings-adjusted leverage to remain around 0.0x, below the 1.0x downgrade threshold for the rating. However, we expect cash flow metrics to weaken as the company generates negative discretionary cash flow (free operating cash flow {FOCF} less dividends and share repurchases) through 2028. Per our criteria, we include net payments related to stock-based award activities in share repurchases. After its first-quarter 2026 results, Alphabet raised $20.4 billion in debt and about $50 billion in equity and equity-like instruments, using all proceeds to fund capital investments. Alphabet also established a $40 billion ATM equity issuance program, which it expects to begin drawing on as soon as third-quarter 2026. We will only include the ATM program in our forecast when equity is issued. We view the company's decision...
