First Read: Alphabet Inc. - Class A GOOGL 2Q26 First Read

Research evidence excerpt

First Read: Alphabet Inc. - Class A GOOGL 2Q26 First Read

Global Research

22 July 2026ab

First Read

EquitiesAlphabet Inc. - Class A

GOOGL 2Q26 First Read Americas

Internet Services

12-month rating Neutral

Key Takeaway: Combination of Cloud backlog disclosure at $510B at 2Q26 close

vs $462B in 1Q26 and cloud margins improving 36% from 32% continues to 12m price target US$400.00

support thesis that EPS will grow into 2H26. Search estimates should remain

largely unchanged on back of this print, while YouTube beat creates room for

Price (21 Jul 2026) US$347.15revenue to move up.

RIC: GOOGL.O BBG: GOOGL US

Guidance - 2026 CapEx guidance not updated Trading data and key metrics

2026 CapEx not updated yet versus $180B-$190B earlier. This compares to 52-wk range US$402.62-189.13

consensus at $187B and UBSe at $196B Market cap. US$4,267b

Cloud backlog jumps to $510B as of 2Q26 close from $462B as of 1Q26 close Shares o/s 12,291m (COM)

Free float 100%

Key takes from results - Beat on 2Q26 revenues, with YouTube the standout Avg. daily volume ('000) 31,850

surprise Avg. daily value (m) US$11,673.8

2Q26 Websites Revenue of $74.3B came in above consensus $74.0B and above Common s/h equity (12/26E) US$717b

UBSe $74.0B P/BV (12/26E) 5.9x

Net debt to EBITDA (12/26E) NM

2Q26 Search Revenue of $63.3B was slightly above consensus $63.2B and slightly

below UBSe $63.4B EPS (UBS, diluted) (USD)

12/26E

2Q26 YouTube Revenue of $11.1B came in above consensus $10.8B and above

UBS Cons.

UBSe $10.7B

Q1 5.11 5.11

2Q26 Google Cloud Revenue of $24.8B came in above consensus $22.4B and Q2E 6.45 2.89

above UBSe $24.0B Q3E 2.78 3.02

Q4E 4.40 3.33

2Q26 Consolidated GAAP OI of $40.8B was roughly in line with consensus $40.8B 12/26E 18.73 14.23

and above UBSe $36.1B 12/27E 17.67 14.67

12/28E 14.08 17.30