Alphabet Raises FY26 Capex Outlook to Over $200B, Pressuring Stock in AH
JOBhakdi · x · 2026-07-23
Alphabet has raised its FY26 capital expenditure outlook to $195B-$205B (up from the previous $180B-$190B estimate), and expects FY27 capex to increase significantly.
This higher spending outlook triggered initial irrational selling pressure, causing Alphabet shares to drop approximately 2% in after-hours trading. Conversely, the compute supply chain reacted rationally, with Micron ($MU) shares gaining about 2% on the news. The author suggests focusing on how the market quantitatively interprets this incremental capex moving forward.
Related event: Google Cloud Doubles in Q2 but AI Spending Turns Free Cash Flow Negative(60 posts)→
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