UBS Tech Views: Google cloud / services demand acceleration and frontier battle keeping up its investments

Research evidence excerpt

UBS Tech Views: Google cloud / services demand acceleration and frontier battle keeping up its investments

Global Research

23 July 2026ab

APAC Technology Equities

GlobalUBS Tech Views: Google cloud / services demand

acceleration and frontier battle keeping up its Technology

investments Randy AbramsAnalyst

randy.abrams@ubs.com

+886-2-8722 7338

Results net out favourably for continued infrastructure investments. Google's Nicolas Gaudois

Analyststock pulled back 3% after hours on another capex upgrade relative to cash flows,

nicolas.gaudois@ubs.com

although we view its growth and outlook nets out positively to the supply chain

+65-6495 5148

sustaining aggressive builds for chip and rack production into 2027. Google again raised

capex to support its accelerating cloud growth and expanding backlog, pick up in Sunny Lin

Analystgrowth rates for services and Gemini search and improving margins where the company

sunny.lin@ubs.com

noted a healthier situation for its compute pricing relative to costs vs. a year ago even +886-2-8722 7346

after heavy component cost inflation. The company also maintained drive to invest in

larger training clusters to support even larger base models to stay on the frontier to Jerry Su

Analystupgrade its business/consumer agentic experience and coding, exhibiting no signs of

jerry.su@ubs.com

dropping off aggressive spending as open source improves. +886-28-722 7306

Diana Chang

See attached the initial comments from covering analyst Stephen Ju (link) and below key Analyst

highlights from the results and implications for the tech supply chain: diana.chang@ubs.com

+886-2-8722 7335

1. Q226 overall results beat for overall sales and cloud growth. Q226 sales

grew 24% YoY to US$120bn, above street US$117bn. Google cloud further Annie Chen