GOOGL raised its FY26 capex outlook to $195B–$205B, up from $180B–$190B, as the company pulls forward capacity to keep up with s
GOOGL raised its FY26 capex outlook to $195B–$205B, up from $180B–$190B, as the company pulls forward capacity to keep up with stronger demand. Google said only a small portion of revenue from existing TPU system sales agreements is expected to be recognized in 2026, with most of it flowing through in 2027. Because of supply constraints, Google also plans to lean more on third-party capacity in Q3 as a temporary bridge, which could create some modest near-term margin pressure.
GOOGL raised its FY26 capex outlook to $195B–$205B, up from $180B–$190B, as the company pulls forward capacity to keep up with stronger demand.
Google said only a small portion of revenue from existing TPU system sales agreements is expected to be recognized in 2026, with most of it flowing through in 2027.
Because of supply constraints, Google also plans to lean more on third-party capacity in Q3 as a temporary bridge, which could create some modest near-term margin pressure.