HyperscalersGOOGLFilings through October 29, 2026
Alphabet capital spending
In the quarter ended September 30, 2026, Alphabet spent $51.4 billion on capital equipment, 121% of its $42.3 billion of operating cash flow and up 114% from a year earlier. Free cash flow was −$9.1 billion, and long-term debt rose by $26.9 billion.
Next report: February 2, 2027, after the close. Provider schedule, not yet confirmed by the company. The full calendar.
Sources, method and freshnessFilings through October 29, 2026
Alphabet’s 10-Q and 10-K filings, latest-filed value per period. Filing history at SEC EDGAR.
Cite as The Capex Report, Alphabet capital spending, filings through October 29, 2026.
Spending against cash flow
$ billion, quarterlyBars are capital spending, the line is operating cash flow, red below the axis is free cash flow when negative. Hover a quarter to read it. 16 reported quarters shown.
Alphabet’s quarterly capital spending has been above the same quarter a year earlier for 14 consecutive quarters, and Sep 2026 was the highest quarter in the 48-quarter record held here. Over the latest four quarters it generated $179.6 billion from operations and spent $159.8 billion, leaving $19.7 billion of free cash flow against $73.6 billion over the four before.
What the letter said would have to happen
From Who Pays for Google's Cloud Boom?, October 28, 2026. Each marker is graded here from the filings when its quarter prints; the argument behind them is in the letter.
- PendingDecember-quarter operating cash of $68 billion or more, enough for full-year free cash flow to break even at the low end of the spending plan.Fourth-quarter report, early February 2027
- PendingThe all-class share count in the annual report stops rising, with any repurchase funded from operating cash rather than new debt.Annual report, February 2027
- PendingA December-quarter Cloud operating margin of 30% or better, alongside a 2027 capital plan well below $300 billion.Fourth-quarter report, early February 2027
Alphabet’s markers are graded against the structured filings on this page, never against the company’s own characterisation of the quarter.
Financing the build
The five hyperscalers combinedThe dot is the quarter’s change in cash. Hover a quarter to read it.
| Millions of dollars | Dec 2024 Q4 FY2024 | Mar 2025 Q1 FY2025 | Jun 2025 Q2 FY2025 | Sep 2025 Q3 FY2025 | Dec 2025 Q4 FY2025 | Mar 2026 Q1 FY2026 | Jun 2026 Q2 FY2026 | Sep 2026 Q3 FY2026 |
|---|---|---|---|---|---|---|---|---|
| Operating cash flow | 39,113 | 36,150 | 27,747 | 48,414 | 52,402 | 45,790 | 39,069 | 42,290 |
| Long-term debt issued | 4,895 | 4,532 | 26,846 | 6,624 | 26,562 | 31,379 | 24,847 | 28,996 |
| Short-term borrowing, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock issued | 0 | 0 | 0 | 0 | 0 | 0 | 30,499 | 12,371 |
| Capital spending | 14,276 | 17,197 | 22,446 | 23,953 | 27,851 | 35,674 | 44,924 | 51,355 |
| Finance-lease principal | 91 | 192 | 110 | 92 | 1,594 | 522 | 318 | 1,110 |
| Long-term debt repaid | 3,750 | 4,521 | 13,876 | 7,697 | 6,333 | 1,477 | 3,776 | 3,626 |
| Share repurchases | 15,551 | 15,068 | 13,238 | 11,504 | 5,899 | 0 | 0 | 0 |
| Dividends | 2,442 | 2,434 | 2,543 | 2,536 | 2,536 | 2,542 | 2,689 | 2,936 |
| Free cash flow | 24,837 | 18,953 | 5,301 | 24,461 | 24,551 | 10,116 | (5,855) | (9,065) |
| Net long-term debt issued | 1,145 | 11 | 12,970 | (1,073) | 20,229 | 29,902 | 21,071 | 25,370 |
| Returned to shareholders | 17,993 | 17,502 | 15,781 | 14,040 | 8,435 | 2,542 | 2,689 | 2,936 |
| Outside funding needed | (6,753) | (1,259) | 10,590 | (10,329) | (14,522) | (7,052) | 8,862 | 13,111 |
| Change in cash | 3,507 | (202) | (2,228) | 2,054 | 7,618 | 7,355 | 17,848 | 423 |
| Interest expense | 53 | 34 | 261 | 143 | 298 | 533 | 1,278 | 967 |
| Stock-based compensation | 5,810 | 5,516 | 6,000 | 6,400 | 7,071 | 6,751 | 8,000 | 8,700 |
Millions of dollars, outflows positive as reported in the cash flow statement.
Capex including finance leases
Across the hyperscalers| Millions of dollars | Dec 2024 Q4 FY2024 | Mar 2025 Q1 FY2025 | Jun 2025 Q2 FY2025 | Sep 2025 Q3 FY2025 | Dec 2025 Q4 FY2025 | Mar 2026 Q1 FY2026 | Jun 2026 Q2 FY2026 | Sep 2026 Q3 FY2026 |
|---|---|---|---|---|---|---|---|---|
| Cash capital spending | 14,276 | 17,197 | 22,446 | 23,953 | 27,851 | 35,674 | 44,924 | 51,355 |
| Equipment acquired under finance leases | 70 | 523 | 83 | 383 | 617 | 211 | 691 | 2,085 |
| Capital spending including finance leases | 14,346 | 17,720 | 22,529 | 24,336 | 28,468 | 35,885 | 45,615 | 53,440 |
| Finance-lease principal paid | 91 | 192 | 110 | 92 | 1,594 | 522 | 318 | 1,110 |
| Finance-lease liability | 1,677 | 2,061 | 2,102 | 2,388 | 2,500 | 2,214 | 2,590 | 3,705 |
| Operating-lease liability | 14,578 | 14,551 | 14,959 | 15,205 | 15,954 | 16,161 | 18,037 | 20,508 |
Equipment acquired under finance leases is a non-cash addition disclosed in the filings; it is not in cash capital spending. Reported in 11 of 48 quarters on file, so the series shows only the quarters the company disclosed.
The balance sheet
The five hyperscalers combined| Millions of dollars | Dec 2024 Q4 FY2024 | Mar 2025 Q1 FY2025 | Jun 2025 Q2 FY2025 | Sep 2025 Q3 FY2025 | Dec 2025 Q4 FY2025 | Mar 2026 Q1 FY2026 | Jun 2026 Q2 FY2026 | Sep 2026 Q3 FY2026 |
|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | 23,466 | 23,264 | 21,036 | 23,090 | 30,708 | 38,063 | 55,911 | 56,334 |
| Short-term investments | 72,191 | 72,064 | 74,112 | 75,406 | 96,135 | 88,777 | 186,563 | 208,764 |
| Long-term investments | 266 | 376 | — | — | — | — | — | — |
| Cash and investments | 95,923 | 95,704 | 95,148 | 98,496 | 126,843 | 126,840 | 242,474 | 265,098 |
| Long-term debt | 10,883 | 10,886 | 23,607 | 21,607 | 46,547 | 77,501 | 98,165 | 125,102 |
| Current debt | 999 | 1,000 | 1,000 | 1,995 | 1,996 | 1,998 | 1,999 | 1,016 |
| Commercial paper | 2,300 | 2,500 | 3,000 | 3,000 | 0 | — | 0 | 0 |
| Gross debt | 11,882 | 11,886 | 24,607 | 23,602 | 48,543 | 79,499 | 100,164 | 126,118 |
| Finance-lease liability | 1,677 | 2,061 | 2,102 | 2,388 | 2,500 | 2,214 | 2,590 | 3,705 |
| Net debt | (84,041) | (83,818) | (70,541) | (74,894) | (78,300) | (47,341) | (142,310) | (138,980) |
| Property and equipment, net, as reported | 171,036 | 185,062 | 203,231 | 223,787 | 246,597 | 281,020 | 321,212 | 372,827 |
| Accumulated depreciation | 79,390 | 83,778 | 89,349 | 93,950 | 98,485 | 100,180 | 105,912 | 113,543 |
| Construction in progress | 50,597 | 55,641 | — | — | — | — | — | — |
| Inventory | — | — | — | — | 2,439 | — | 9,991 | 13,308 |
| Inventory days | — | — | — | — | 5 days | — | 20 days | 24 days |
| Total assets | 450,256 | 475,374 | 502,053 | 536,469 | 595,281 | 703,919 | 921,983 | 1,003,312 |
| Shareholders’ equity | 325,084 | 345,267 | 362,916 | 386,867 | 415,265 | 478,746 | 640,480 | 677,549 |
| Interest expense | 53 | 34 | 261 | 143 | 298 | 533 | 1,278 | 967 |
| Interest paid | — | — | — | — | — | — | — | — |
| Effective interest cost | 1.6% | 1.0% | 3.9% | 2.2% | 2.3% | 2.6% | 5.0% | 3.0% |
| Stock-based compensation | 5,810 | 5,516 | 6,000 | 6,400 | 7,071 | 6,751 | 8,000 | 8,700 |
| Shares outstanding, millions | 12,211 | 12,155 | 12,104 | 12,077 | 12,088 | 12,116 | 12,230 | 12,294 |
Quarter-end balances. Gross debt is long-term plus current debt as reported; net debt is gross debt less cash and investments, negative when the company holds more than it owes.
Where the revenue is
Across the companiesGoogle Cloud segment: $30.7B of revenue in Sep 2026, $11.1B of operating income (36.2% margin). Members read: StatementBusinessSegmentsAxis=GoogleCloudMember.
Segments are the company’s own, as tagged in its segment note, and are not comparable across companies. Operating income is reported only for reportable segments.
What the asset base is made of
Across the hyperscalers| Millions of dollars | Dec 2024 Q4 FY2024 | Mar 2025 Q1 FY2025 | Jun 2025 Q2 FY2025 | Sep 2025 Q3 FY2025 | Dec 2025 Q4 FY2025 | Mar 2026 Q1 FY2026 | Jun 2026 Q2 FY2026 | Sep 2026 Q3 FY2026 |
|---|---|---|---|---|---|---|---|---|
| Servers and network equipment | 141,852 | 150,992 | 167,467 | 184,107 | 203,679 | 217,886 | 247,177 | 282,842 |
| Buildings | 45,403 | 44,871 | 45,493 | 45,715 | 48,348 | 48,772 | 50,635 | 51,101 |
| Construction in progress | 50,597 | — | 61,700 | 69,856 | 78,592 | 108,597 | 122,814 | 145,270 |
| Other | 12,574 | 17,336 | 17,920 | 18,059 | 14,463 | 5,945 | 6,498 | 7,157 |
| Classes combined | 250,426 | 213,199 | 292,580 | 317,737 | 345,082 | 381,200 | 427,124 | 486,370 |
| Property and equipment, gross, as reported | 199,829 | 213,199 | — | — | — | — | — | — |
| Accumulated depreciation | 79,390 | 83,778 | 89,349 | 93,950 | 98,485 | 100,180 | 105,912 | 113,543 |
| Share of the balance the classes explain | 125.3% | 100.0% | — | — | — | — | — | — |
Gross cost before depreciation, by the classes the company reports.Servers and network equipment are 58.2% of the classes combined at Sep 2026. Classes read: Asset Under Construction, Construction In Progress, Corporate and Other Assets, Furniture and Fixtures, Land and Building, Leasehold Improvements, Office Space, Technical Infrastructure, Technology Equipment.
Debt issued
The ledger across all companies| Priced | Type | Tranches and maturities | Coupons | Amount, $ millions | Confidence | Filing |
|---|---|---|---|---|---|---|
| Aug 6, 2026 | Registered notes | 10 tranches, 2028 to 2066 | 4.50 to 6.50% | 25,000 | High: term sheet | FWP |
| May 15, 2026 | Registered notes | 7 tranches, 2029 to 2066, JPY converted | 1.97 to 4.60% | 3,633 | High: term sheet | FWP |
| May 5, 2026 | Registered notes | 4 tranches, 2031 to 2056, CAD converted | 3.65 to 5.00% | 6,246 | High: term sheet | FWP |
| May 5, 2026 | Registered notes | 6 tranches, 2030 to 2063, EUR converted | 3.20 to 4.80% | 10,536 | High: term sheet | FWP |
| Feb 10, 2026 | Registered notes | 5 tranches, 2029 to 2126, GBP converted | 4.13 to 6.13% | 7,515 | High: term sheet | FWP |
| Feb 9, 2026 | Registered notes | 7 tranches, 2029 to 2066 | 3.70 to 5.75% | 20,000 | High: term sheet | FWP |
| Nov 3, 2025 | Registered notes | 6 tranches, 2028 to 2064, EUR converted | 2.38 to 4.38% | 7,495 | High: term sheet | FWP |
| Nov 3, 2025 | Registered notes | 8 tranches, 2028 to 2075 | 3.88 to 5.70% | 17,500 | High: term sheet | FWP |
| Apr 29, 2025 | Registered notes | 5 tranches, 2029 to 2054, EUR converted | 2.50 to 4.00% | 7,692 | High: term sheet | FWP |
| Apr 28, 2025 | Registered notes | 4 tranches, 2030 to 2065 | 4.00 to 5.30% | 5,000 | High: term sheet | FWP |
In 2026 Alphabet has priced $72.9B of notes and term loans in 6 filings. Read from pricing term sheets, prospectus supplements and 8-K filings; commercial paper and bank lines drawn without an 8-K are not here, and the cash flow statement above remains the complete record.
Demand behind the capex
All companies, side by side| Millions of dollars | Dec 2024 Q4 FY2024 | Mar 2025 Q1 FY2025 | Jun 2025 Q2 FY2025 | Sep 2025 Q3 FY2025 | Dec 2025 Q4 FY2025 | Mar 2026 Q1 FY2026 | Jun 2026 Q2 FY2026 | Sep 2026 Q3 FY2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 96,469 | 90,234 | 96,428 | 102,346 | 113,829 | 109,896 | 119,796 | 127,577 |
| Remaining performance obligations | 93,200 | 92,400 | 108,200 | 157,700 | 242,800 | 467,600 | 519,500 | 567,700 |
| Backlog over trailing revenue | 0.3× | 0.3× | 0.3× | 0.4× | 0.6× | 1.1× | 1.2× | 1.2× |
| Deferred revenue, current | 5,036 | 4,908 | 4,969 | 5,542 | 6,578 | 7,162 | 7,154 | 9,429 |
| Deferred revenue | 6,000 | 6,600 | 6,800 | 7,400 | 8,600 | 9,800 | 10,100 | 12,600 |
At Sep 2026 Alphabet carried $567.7B of remaining performance obligations, 1.2× its trailing four quarters of revenue. Remaining performance obligations are contracted revenue not yet recognised, under the company’s own definition; deferred revenue is the part already billed. Neither is comparable across companies.
Depreciation against capex
The five hyperscalers combined| Millions of dollars | Dec 2024 Q4 FY2024 | Mar 2025 Q1 FY2025 | Jun 2025 Q2 FY2025 | Sep 2025 Q3 FY2025 | Dec 2025 Q4 FY2025 | Mar 2026 Q1 FY2026 | Jun 2026 Q2 FY2026 | Sep 2026 Q3 FY2026 |
|---|---|---|---|---|---|---|---|---|
| Capital spending | 14,276 | 17,197 | 22,446 | 23,953 | 27,851 | 35,674 | 44,924 | 51,355 |
| Depreciation of property and equipment | 4,205 | 4,487 | 4,998 | 5,611 | 6,040 | 6,482 | 7,104 | 8,369 |
| Capex to depreciation | 3.4× | 3.8× | 4.5× | 4.3× | 4.6× | 5.5× | 6.3× | 6.1× |
| Amortization of intangibles | — | 122 | 124 | 129 | — | 178 | 367 | 375 |
| Depreciation and amortization, as reported | — | 4,609 | 5,122 | 5,740 | — | 6,660 | 7,471 | 8,744 |
| Property and equipment, net, as reported | 171,036 | 185,062 | 203,231 | 223,787 | 246,597 | 281,020 | 321,212 | 372,827 |
| Property and equipment, gross | 199,829 | 213,199 | — | — | — | — | — | — |
In Sep 2026 Alphabet spent 6.1× what it recorded as depreciation of property and equipment. Depreciation of property and equipment excludes amortization of acquired intangibles, shown separately. Depreciation reported in 15 of 51 quarters on file.
The statement
Download the source data| Millions of dollars | Dec 2024 Q4 FY2024 | Mar 2025 Q1 FY2025 | Jun 2025 Q2 FY2025 | Sep 2025 Q3 FY2025 | Dec 2025 Q4 FY2025 | Mar 2026 Q1 FY2026 | Jun 2026 Q2 FY2026 | Sep 2026 Q3 FY2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 96,469 | 90,234 | 96,428 | 102,346 | 113,829 | 109,896 | 119,796 | 127,577 |
| Operating cash flow | 39,113 | 36,150 | 27,747 | 48,414 | 52,402 | 45,790 | 39,069 | 42,290 |
| Capital spending | 14,276 | 17,197 | 22,446 | 23,953 | 27,851 | 35,674 | 44,924 | 51,355 |
| Free cash flow | 24,837 | 18,953 | 5,301 | 24,461 | 24,551 | 10,116 | (5,855) | (9,065) |
| Depreciation and amortization | — | 4,609 | 5,122 | 5,740 | — | 6,660 | 7,471 | 8,744 |
| Long-term debt | 10,883 | 10,886 | 23,607 | 21,607 | 46,547 | 77,501 | 98,165 | 125,102 |
| First filed / release date | Feb 5, 2025 | Apr 25, 2025 | Jul 24, 2025 | Oct 30, 2025 | Feb 5, 2026 | Apr 30, 2026 | Jul 23, 2026 | Oct 29, 2026 |
Millions of dollars. Negatives in parentheses. A dash means the filing did not report it or the extract withheld it. Fiscal quarter labels follow the company’s calendar.
Questions this page answers
- How much did Alphabet spend on capital expenditures last quarter?
- Alphabet spent $51.4 billion on purchases of property and equipment in the quarter ended September 30, 2026, up 114% from the same quarter a year earlier. Over its latest four reported quarters it spent $159.8 billion.
- Did Alphabet's capital spending exceed its operating cash flow?
- Yes. In the quarter ended September 30, 2026 Alphabet spent 121% of its $42.3 billion of operating cash flow on capital equipment, leaving free cash flow of −$9.1 billion.
- What is Alphabet's free cash flow?
- −$9.1 billion in the quarter ended September 30, 2026, and $19.7 billion over the latest four reported quarters, against $73.6 billion over the four before. Free cash flow here is operating cash flow less purchases of property and equipment, as the company reports them. Two of the last four quarters were negative.
- Is Alphabet's capital spending still rising?
- Yes. Alphabet's quarterly capital spending has been above the same quarter a year earlier for 14 consecutive quarters, and Sep 2026 was the highest quarter in its 48-quarter record on this site. The latest four quarters' spending is 105% above the four before.
- Did Alphabet borrow to fund its spending?
- Alphabet's long-term debt rose by $26.9 billion over the quarter ended September 30, 2026. The balance-sheet change is a proxy for net borrowing: maturities, reclassification and acquisitions also move it, and the cash flow statement's financing lines are the exact record.
- Is this Alphabet's AI spending?
- No. These are Alphabet's company-wide purchases of property and equipment from its cash flow statement, which include everything from data centers to offices and vehicles. The company does not report an AI line, and this page does not estimate one.
Terms used on this page
Capital expenditures (capex)Free cash flowCapex versus depreciationLong-term debt. The methodology sets out every definition and its limits.