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GOOGLEarnings2026-07-22
Ashkenazi explains a plan to rent outside computing capacity in the third quarter.
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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 power rented from another company rather than built and owned in-house.
- margin pressure
- — A squeeze on profitability, where costs rise faster than revenue.
Educational summary of a public statement. Not investment advice.