Alphabet’s stock holds near $367 in mid-June 2026 after the tech giant delivered strong first-quarter earnings and signaled an even more aggressive push into artificial intelligence infrastructure, with capital expenditure guidance climbing to as much as $190 billion for the full year.
The company reported Q1 2026 revenue of $109.9 billion, up 22% year-over-year and exceeding analyst expectations of $107.2 billion, according to CNBC. Operating income grew 30% to $40 billion, marking the company’s eleventh consecutive quarter of double-digit revenue growth, according to Alphabet’s investor presentation from June 2026.
Google Cloud emerged as the earnings standout, delivering $20.03 billion in revenue—a 63% increase from the prior year and well above the $18.05 billion estimate, according to StreetAccount data reported by CNBC. The cloud business’s backlog nearly doubled quarter-over-quarter to over $460 billion, driven by surging demand for enterprise AI solutions, which became the cloud unit’s primary growth driver for the first time in Q1.
Capital expenditure intensity accelerated sharply. Alphabet spent $35.7 billion on CapEx in the first quarter alone, representing a 107% year-over-year increase, according to Investing.com. The company raised its full-year 2026 CapEx guidance by $5 billion to a range of $180 billion to $190 billion, up from the prior estimate of $175 billion to $185 billion, according to Fortune and CNBC. CEO Sundar Pichai stated on the earnings call that Alphabet is “compute constrained in the near term,” noting that “our cloud revenue would have been higher if we were able to meet the demand.”
The CapEx surge reflects a strategic bet on AI infrastructure at a scale unprecedented for the company. In 2022, Alphabet spent approximately $31 billion in CapEx; the 2026 guidance represents six times that level and double the $91.4 billion spent in 2025, according to Alphabet’s June 2026 investor presentation. The overwhelming majority of the spending targets technical infrastructure to support AI model training and inference at scale.
To fund this expansion, Alphabet announced an $85 billion equity capital raise in early June 2026. The company initially announced an $80 billion raise on June 1, then upsized it to $84.75 billion just two days later as demand exceeded expectations, according to Bloomberg and Alphabet’s investor relations announcement. The raise includes a $10 billion investment from Berkshire Hathaway and approximately $35 billion in underwritten public offerings, with additional share sales planned for the third quarter of 2026.
Looking ahead, management signaled even steeper CapEx growth. Chief Financial Officer Anat Ashkenazi told analysts that 2027 CapEx will “significantly increase” compared to 2026 levels, according to CNBC. The company is funding these investments through a balanced approach combining strong operating cash flow—$174 billion over the trailing twelve months as of Q1—with debt issuances and the equity raise, according to the investor presentation.
The stock’s resilience near $367, despite pulling back from a May peak above $400, reflects investor confidence in the company’s cloud growth trajectory and AI monetization strategy, even as the massive capital commitments raise questions about near-term return on investment. Analysts maintain a generally bullish stance; according to Benzinga, the consensus price target among 24 analysts is $269.58, though TD Cowen issued a $475 target on June 9, 2026.
Sources
- CNBC — Q1 2026 earnings data, CapEx guidance, and CFO commentary on 2027 spending
- Alphabet Investor Relations (abc.xyz) — Official Q1 2026 earnings call details and CapEx figures
- Alphabet Blog (blog.google) — June 2026 investor presentation with full-year CapEx guidance and equity raise details
- Bloomberg — Equity raise upsize announcement and details
- Fortune — CapEx guidance increase and full-year 2026 forecast
- Investing.com — Q1 CapEx spending and year-over-year comparison
- Yahoo Finance / StreetAccount — Google Cloud revenue figures and consensus estimates
- Google Finance / Macrotrends / CNN — Current stock price levels in mid-June 2026
- Benzinga — Analyst price targets and consensus ratings
