Alphabet is tapping debt markets on two fronts while its latest quarterly scorecard tells a story of two businesses moving in opposite directions. A euro-denominated bond sale drew demand far beyond what the company was offering, a separate energy-related financing is taking shape, and analysts are sharpening their pencils on the search business even as Google Cloud posts explosive growth.
Bond Buyers Pile In
Alphabet launched a EUR 6 billion bond sale on Monday, split across seven tranches with maturities stretching from two to 19 years, according to Reuters. Investor orders came in at just over EUR 17 billion — nearly triple the amount on offer. Proceeds are earmarked for general corporate purposes, including the possible repayment of debt.
A second, unrelated financing is also in the works. Bloomberg reported Tuesday that the California Community Choice Financing Authority plans to issue more than $1.5 billion in energy bonds to prepay for power, with Alphabet positioned as the recipient of the funds and Goldman Sachs arranging the offering. The electricity is intended for Central Coast Community Energy. That deal remains in the planning stage and is entirely separate from the euro bond sale.
Cloud Revenue More Than Doubles
The borrowing comes as Alphabet’s third-quarter 2026 results, released October 28, show revenue of $127.58 billion — a 25% increase from the same period a year earlier. Diluted earnings per share came in at $2.12.
Google Cloud was the standout: revenue of $30.7 billion, up 103% year over year, outpacing the group’s overall growth rate by a wide margin. Capital expenditure for the quarter reached $51.36 billion, underscoring the scale of Alphabet’s AI infrastructure build-out.
Should investors sell immediately? Or is it worth buying Alphabet?
Wells Fargo Trims Its Target
Not every corner of the business is accelerating. Wells Fargo lowered its price target on Alphabet on Monday to $365 from $371, according to media reports, while keeping an “Overweight” rating on the stock. The firm pointed to AI overviews in search results as a driver of slower revenue growth in the search business.
That concern took center stage alongside the quarterly figures, which highlighted both the deceleration in search and the hefty AI spending bill.
Buyouts Go Global
Meanwhile, Google has extended its voluntary severance program to selected employees in additional countries. Reuters reported Wednesday that the offers now cover staff in Canada, France, Germany, Japan and Switzerland. The Alphabet subsidiary confirmed the offers began in June. Reuters was unable to determine how many employees have accepted; the program targets selected workers rather than entire workforces in those countries.
Shares of Alphabet rose 1.9% on Wednesday to EUR 256.65.
Ad
Alphabet Stock: Buy or Sell?! New Alphabet Analysis from November 7 delivers the answer:
The latest Alphabet figures speak for themselves: Urgent action needed for Alphabet investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 7.
Alphabet: Buy or sell? Read more here...
