IT Hardware & Communications Equipment: Read-through: GOOGL Earnings

Research evidence excerpt

IT Hardware & Communications Equipment: Read-through: GOOGL Earnings

Equity Research

22 July 2026

IT Hardware & Communications Equipment

Read-through: GOOGL Earnings

GOOGL reported Jun-Q earnings that have implications to

stocks within our coverage universe, specifically cloud capex

exposed stocks (ANET, CIEN, CSCO, CLS, FLEX, and GLW). ITEquipmentHardware and Communications

NEUTRAL

GOOGL Implications IT Hardware and Communications

GOOGL (covered by Ross Sandler) reported revenue (ex-TAC) of $103.6Bn and EPS of $9.11, Equipment

beating both top- and bottom-line consensus of $101.1B revenues and $3.28 EPS. However, the Tim Long

EPS beat included other income net gain primarily due to net unrealized gains on equity +1 212 526 4043

tim.long@barclays.comsecurities, rendering the actual not comparable to the Street estimate.

BCI, US

Jun-Q capex was $44.9Bn, up 100% Y/Y, roughly in-line with the Street estimate of $44Bn. Alyssa Shreves

+1 212 526 7570

•• Capex in the Q was again driven by investments in technical infrastructure to support AI alyssa.shreves@barclays.com

investments. BCI, US

•• FY26 guide raised to the range of $195-205Bn up from $180-190Bn (and prior Mary Lenox

+1 212 526 6277

$175-185Bn), and the company still expects FY27 capex to increase significantly compared to

mary.lenox@barclays.com

FY26. BCI, US

•• GOOGL TAC came in at $16.2Bn (up 10% Y/Y), in-line with the Street estimate of $16.2Bn. We Clarisse Yu

still believe risk remains for AAPL advertising revenues, given the ISA contract between AAPL +1 212 526 7025

clarisse.yu@barclays.com and GOOGL.

Implications for networking and industrial tech stocks

We view the continued spend on technical infrastructure as positive to our cloud-exposed