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GOOGLEarnings2026-07-22
Ashkenazi outlines plans to lean on outside compute capacity in the third quarter and flags the financial consequence of doing so.
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Anat Ashkenazi · Alphabet Investor Relations · Alphabet 2026 Q2 Earnings Call
“And given the supply constraint environment, we plan to expand the use of third-party capacity in Q3 as a bridging strategy while we build out more internal capacity. This strategy allows us to keep growing our customer base and capture greater overall value. However, it will create modest margin pressure in the near-term as we utilize this capacity.”
Key terms
- third-party capacity
- — Computing capacity rented from other providers rather than built and owned by the company itself.
- supply constraint environment
- — A situation where available computing hardware or capacity is less than customer demand.
Educational summary of a public statement. Not investment advice.