Alphabet Q2 2026 SOTP valuation

Alphabet Inc. (GOOGL)
By@hypertonx
Assumptions as of 2026-07-27
USD
Updated Jul 27, 2026
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Alphabet Q2 2026 SOTP valuation

Q2 2026 refresh of the Alphabet tracked-valuation SOTP using the linked valuation's required segment-by-segment framework, reviewed again on 2026-07-27 after the 8-K earnings release, Q2 Form 10-Q, earnings-call transcript, and current market price were available. Google Services is valued on FY2027E after-tax operating earnings, Google Cloud on FY2027E revenue, Other Bets on a venture-style NPV, and Alphabet-level shared AI costs are capitalized as a valuation drag. Net cash available to common stockholders excludes long-term debt and mandatory convertible preferred stock. Reported GAAP EPS is not used because Q2 included $98.0B of primarily unrealized equity-security gains.

as of 2026-07-27

Fair value
$338.70
Upside/downside
-2.4%
Implied common equity value
$4,169
Google Services value
$2,976
Google Cloud value
$1,337
Other Bets value
$50
Net cash available to common
$126
Capitalized Alphabet-level cost drag
$321
FY2027E Services after-tax operating earnings
$148.8
FY2027E Cloud revenue
$133.7

Balance sheet

$242.5$B
12.309B
$98.2$B
$18.0$B

Corporate

10.0%
15
16.0%

Google Cloud

35.0%
10

Google Services

12.0%
20

Market

$346.96
Latest GOOGL quote · updated Aug 25, 2026 2:00 PM MDT

Other Bets

$50$B

Reported facts

$5.8$B
$24.8$B
$39.5$B

Sources

  1. Alphabet Q2 2026 revenue was $119.796B; Google Services revenue was $94.540B with $39.544B of operating income, and Google Cloud revenue was $24.768B with $8.814B of operating income. — storage.googleapis.com (accessed 2026-07-27)
  2. The Q2 2026 Form 10-Q reports $242.474B of cash, cash equivalents, and marketable securities; $98.165B of long-term debt; $18.023B of mandatory convertible preferred stock; and 12.309B diluted shares for Q2. — sec.gov (accessed 2026-07-27)
  3. Q2 operating cash flow was about $39.1B, capex was about $44.9B, and free cash flow was about negative $5.9B, reflecting AI infrastructure investment. — youtube.com (accessed 2026-07-27)
  4. Management said Cloud backlog reached $514B; model APIs processed about 22B tokens per minute; AI Mode exceeded 1B monthly active users; and the Gemini app had 950M monthly active users. — youtube.com (accessed 2026-07-27)
  5. GOOGL provider price was $327.875 at 2026-07-27 13:39:42 UTC. — google.com (accessed 2026-07-27)

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