GOOG 10-Q filed 2026-10-29 | Key takeaways

Google Cloud revenue backlog of $567.7B disclosed, with $560.8B related to Google Cloud; company elected to change revenue backlog reporting to include contracts with original expected term of one year or less.

Wiz acquisition closed March 11, 2026 for $29.5B, adding $22.7B goodwill and $8.3B intangible assets to Google Cloud segment; preliminary purchase price allocation includes patents and developed technology ($3.6B, 7-year weighted-average life), customer relationships ($4.5B, 10-year), and trade names ($200M, 7-year).

Intersect acquisition closed March 10, 2026 for $5.9B, adding $2.2B goodwill allocated to Google Services and Google Cloud and $5.1B property and equipment; Intersect is a VIE with Alphabet as primary beneficiary.

Crux AI joint venture formed with Blackstone in May 2026; Blackstone committed to provide up to $5B in capital contributions and Alphabet committed up to $10B in data center and energy infrastructure backstops; multi-year commercial agreement with the venture included in revenue backlog ($16.8B).

$19B mandatory convertible preferred stock issued June 5, 2026 (19M shares, 6.25% dividend, Series A indexed to Class A, Series B indexed to Class C); $1B capped call transactions entered to reduce dilution; $0.22 quarterly common dividend declared.

$20.5B common equity offering closed June 4, 2026 (29M Class A at $355.20, 29M Class C at $351.80); concurrent $10B private placement to Berkshire Hathaway affiliate (14M Class A, 14M Class C shares).

Long-term debt increased to $125.1B from $98.2B in Q2 following $45B US dollar-denominated and $35.8B foreign currency-denominated senior note issuances in 2026; Q3 issuances included $23.8B US fixed-rate notes (5.55% weighted-average coupon, 15-year weighted-average maturity) and A$5.6B Australian dollar notes.

As of September 30, 2026, Alphabet had $567.7B of remaining performance obligations (revenue backlog), of which $560.8B related to Google Cloud. The company elected to change reporting to include contracts with original expected term of one year or less. The backlog includes $16.8B associated with a multi-year commercial agreement with Crux AI. The company expects to recognize just over 55% of revenue backlog as revenues over the next 24 months.

Completed Wiz acquisition March 11, 2026 for $29.5B (preliminary allocation: $22.7B goodwill, $8.3B intangible assets including patents and developed technology $3.6B, customer relationships $4.5B, trade names $200M). Completed Intersect acquisition March 10, 2026 for $5.9B (final allocation: $2.2B goodwill, $5.1B property and equipment, $1.2B debt assumed). Both acquisitions included in Q3 2026 10-Q with six months of combined operations.

In May 2026, Alphabet entered agreement with Blackstone to form Crux AI joint venture for data center capacity services. Blackstone committed to provide up to $5B in capital contributions; Alphabet committed up to $10B in data center and energy infrastructure backstops. Alphabet holds minority interest, accounts for investment under equity method, not primary beneficiary. Multi-year commercial agreement with venture included in revenue backlog ($16.8B). Maximum exposure to unconsolidated VIEs increased from $1.1...

On June 5, 2026, Alphabet issued 385M depositary shares representing 19M shares of 6.25% Mandatory Convertible Preferred Stock, split evenly between Series A (indexed to Class A) and Series B (indexed to Class C). Net proceeds of $19B. Mandatory conversion date on or about May 15, 2029. Conversion rates between 2.2520-2.8160 Class A shares and 2.2740-2.8420 Class C shares depending on market value. $1B capped call transactions entered to reduce dilution with initial cap prices representing 50% premium over offer...

On June 4, 2026, Alphabet completed underwritten public offering of 29M Class A shares at $355.20 and 29M Class C shares at $351.80 (net proceeds $20.5B). Concurrently, completed private placement of 14M Class A and 14M Class C shares to Berkshire Hathaway affiliate for $10B net proceeds. Total equity proceeds of $30.5B to be used for capital expenditures to scale AI infrastructure and global compute.

Long-term debt increased to $125.1B as of September 30, 2026 from $98.2B as of June 30, 2026. During 2026, company issued $45B US dollar-denominated senior notes and $35.8B foreign currency-denominated senior notes. Q3 2026 issuances included $23.8B US fixed-rate notes (5.55% weighted-average coupon, 15-year maturity) and A$5.6B Australian dollar notes (5.82% weighted-average coupon, 8-year maturity). Fair value of outstanding notes approximately $114.9B.