· Event impact

Alphabet Raises 2026 Capex to $205B; $20B Depreciation Hit Looms in 2027

Type: earningsConfidence: 0.9Verified: keep
Higher depreciation schedules create a structural headwind for future EPS growth and margin expansion.

Transmission path

Higher depreciation schedules create a structural headwind for future EPS growth and margin expansion.

Market mechanism

Higher depreciation schedules create a structural headwind for future EPS growth and margin expansion.

Extended read

Alphabet's aggressive infrastructure build-out is a double-edged sword. While it secures AI capacity, the $205 billion capex bill will begin hitting the income statement via depreciation in 2027. This $20 billion annual headwind requires significant revenue acceleration from AI services to maintain current margin profiles.

Exposed assets

GOOGL

Countries: US

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