Dimitry Nakhla | Babylon Capital®
One of the more underappreciated stories inside $GOOGL Cloud right now is the steady improvement in incremental operating margins.

𝐐𝟒 𝟐𝟎𝟐𝟑 → 𝐐𝟒 𝟐𝟎𝟐𝟒 (Google Cloud):

Rev: $9.192B → $11.955B (+$2.763B)

OpInc: $0.864B → $2.093B (+$1.229B)

𝐈𝐧𝐜𝐫𝐞𝐦𝐞𝐧𝐭𝐚𝐥 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐌𝐚𝐫𝐠𝐢𝐧:
$1.229B ÷ $2.763B ≈ 𝟒𝟒%
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𝐐𝟒 𝟐𝟎𝟐𝟒 → 𝐐𝟒 𝟐𝟎𝟐𝟓 (Google Cloud):

Rev: $11.955B → $17.664B (+$5.709B)

OpInc: $2.093B → $5.313B (+$3.220B)

𝐈𝐧𝐜𝐫𝐞𝐦𝐞𝐧𝐭𝐚𝐥 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐌𝐚𝐫𝐠𝐢𝐧:
$3.220B ÷ $5.709B ≈ 𝟓𝟔%

So we’re seeing a clear step-up:

~44% → ~56% incremental operating margins in back-to-back periods.

𝐈𝐧 𝐨𝐭𝐡𝐞𝐫 𝐰𝐨𝐫𝐝𝐬, 𝐟𝐨𝐫 𝐞𝐯𝐞𝐫𝐲 𝐢𝐧𝐜𝐫𝐞𝐦𝐞𝐧𝐭𝐚𝐥 $𝟏 𝐨𝐟 𝐂𝐥𝐨𝐮𝐝 𝐫𝐞𝐯𝐞𝐧𝐮𝐞, 𝐫𝐨𝐮𝐠𝐡𝐥𝐲 $𝟎.𝟓𝟔 𝐢𝐬 𝐝𝐫𝐨𝐩𝐩𝐢𝐧𝐠 𝐭𝐨 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐩𝐫𝐨𝐟𝐢𝐭.
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Growth matters.

𝘉𝘶𝘵 𝘨𝘳𝘰𝘸𝘵𝘩 + 𝘳𝘪𝘴𝘪𝘯𝘨 𝘪𝘯𝘤𝘳𝘦𝘮𝘦𝘯𝘵𝘢𝘭 𝘮𝘢𝘳𝘨𝘪𝘯𝘴 𝘪𝘴 𝘸𝘩𝘢𝘵 𝘴𝘵𝘢𝘳𝘵𝘴 𝘵𝘰 𝘶𝘯𝘭𝘰𝘤𝘬 𝘴𝘦𝘳𝘪𝘰𝘶𝘴 𝘭𝘰𝘯𝘨-𝘵𝘦𝘳𝘮 𝘤𝘰𝘮𝘱𝘰𝘶𝘯𝘥𝘪𝘯𝘨.
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The Transcript
$QCOM CEO talks of memory shortages:

"While our near-term handsets outlook is impacted by industry-wide memory supply constraints, we are encouraged by end-consumer demand for premium and high-tier smartphones & remain on track to achieve our FY 29 revenue goals"

Qualcomm CEO: "We are pleased to deliver strong quarterly results, with record total company revenues. Our momentum across personal, industrial and physical AI is growing..."

$QCOM: -9% AH https://t.co/QXxlynWpWq - The Transcript
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The Transcript
RT @mark_wharrier: Imagine a company spending $3bn+ capex a week…

Alphabet CEO guiding to $175–185B in FY26 capex vs $91.4B in FY25 [YoY increase of ~92–102%]

"To meet customer demand and capitalize on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185B."

$GOOG $GOOGL https://t.co/iCPTR76C5H - The Transcript
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Fiscal.ai
"Our 2026 CapEx investments are anticipated to be in the range of $175 to $185 billion."

$GOOGL https://t.co/uQTWAaOJPI
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The Transcript
Alphabet is guiding to FY26 CapEx of $175–185B, equivalent to nearly half of FY25 revenues.

$GOOG $GOOGL https://t.co/8RAT7ylpgH

Alphabet CEO guiding to $175–185B in FY26 capex vs $91.4B in FY25 [YoY increase of ~92–102%]

"To meet customer demand and capitalize on the growing opportunities we have ahead of us, our 2026 CapEx investments are anticipated to be in the range of $175 to $185B."

$GOOG $GOOGL https://t.co/iCPTR76C5H - The Transcript
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Wasteland Capital
Insane Q4 print from $GOOG. Revenue accelerating yet again to +18% (+16 last Q). Cloud+48% (What. The. F*ck?) 😳. Search +17% (it was supposedly dead, hahaha). Margins strong, EPS +31%, scaling well. ‘26 Capex guide $175-185bn = demand driven. Gemini app now 750m users. 👏👏👏 https://t.co/0U3ET7cLw0
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The Transcript
e.l.f. Beauty double beat + raised FY 26 outlook

CEO: "We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook."

$ELF: +14% AH https://t.co/bPXqPRPq8X
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The Transcript
Snap CEO: "Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful margin expansion."

Authorizes a $500M buyback

$SNAP: +6% AH https://t.co/SII7Mnl3x1
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Bourbon Capital
$GOOG CEO: More than 120,000 enterprises use Gemini including AI unicorns
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