Alphabet raises $41 billion from debt, stock to fund AI

Alphabet ↘ 12.29% raised more than $41 billion from bond and stock investors in the third quarter and bought back no shares. The company is borrowing and issuing equity to pay for its AI infrastructure spending. In its third-quarter 2026 earnings release on October 28, Alphabet said it issued senior unsecured notes for net proceeds of $28.7 billion, "to be used for general corporate purposes." It also sold 12 million Class A shares for $4.3 billion and 24 million Class C shares for $8.1 billion through its at-the-market (ATM) program. As of September 30, $27.6 billion remained available under the program.static.poder360.com.br

The Information reported that the $12.4 billion in stock sales came through an ATM program Alphabet announced earlier this year as part of a broader equity fundraising effort.theinformation.com

Spending outpaces cash

Capital spending explains the fundraising. Alphabet's purchases of property and equipment more than doubled from a year earlier to $51.4 billion in the quarter, according to an analysis of the filing by PPC Land. Operating cash flow fell 13% to $42.3 billion, which left free cash flow at negative $9.1 billion, the second straight negative quarter. Long-term debt reached $125.1 billion at the end of September, up from $46.5 billion at the end of 2025. Alphabet bought back no stock in the first nine months of 2026, compared with $39.8 billion in repurchases in the same period of 2025.ppc.land

The ATM program was part of financing Alphabet announced in June. That package included roughly $85 billion of equity financing, a $10 billion investment from Berkshire Hathaway ↗ 0.30%, a public offering and a $40 billion ATM program set to start in the third quarter, PPC Land reported. Alphabet's 2026 capital expenditure guidance, raised in July, is $195 billion to $205 billion. Reaching that range would require $63 billion to $73 billion of spending in the fourth quarter.ppc.land

Investors react

The financing came alongside mixed results. Revenue rose 25% to $127.6 billion and Google Cloud revenue grew 103% to $30.7 billion, Investing.com reported. However, earnings per share of $2.12 fell short of analyst expectations of $3.02, partly because of an $8.7 billion loss on equity stakes. Search advertising also grew more slowly than expected, and the stock fell about 10% in after-hours trading.au.investing.com

Alphabet is now funding part of its data center buildout with outside capital instead of cash from operations. Its cash flow statement shows the company raised about $142 billion in debt and equity over nine months. It has not said when buybacks will resume.ppc.land