Alphabet and Verizon Q1 2026 results highlight contrasting strategies after Dow swap

Earnings Impact 4
โดย 24/7 Wall St.·Read original
Summary · why it matters

Alphabet and Verizon reported first-quarter 2026 results that underscore why S&P Dow Jones Indices replaced Verizon with Alphabet in the Dow Jones Industrial Average. Alphabet's Google Cloud revenue surged 63% year over year to $20.03 billion, with backlog nearly doubling quarter on quarter to over $460 billion, while capital expenditures more than doubled to $35.67 billion, causing free cash flow to drop 46.63% to $10.12 billion. Verizon posted its first positive first-quarter postpaid phone net adds in over a decade, lifted fiber broadband connections 41.9% to roughly 10.8 million after closing the Frontier deal, and guided free cash flow above $21.5 billion, supporting a dividend yield of about 6%. Alphabet guided 2026 capital expenditures of $175 billion to $185 billion, while Verizon guided $16.0 billion to $16.5 billion. The contrast highlights Alphabet's aggressive AI infrastructure bet versus Verizon's focus on operational repair and income generation.

Impact on stocks 2

Artificial Intelligence▲ · 1 stocks
Alphabet Inc Class C
GOOG
▲ PositiveDemandCapitalrelevance

Google Cloud revenue surged 63% YoY to $20.03B, backlog nearly doubled to over $460B, indicating strong end-customer demand.

Cloud & Digital Infrastructure▲ · 1 stocks
Verizon Communications Inc
VZ
▲ PositiveDemandCapitalrelevance

First positive Q1 postpaid phone net adds in over a decade, fiber broadband connections up 41.9% to ~10.8M after closing Frontier deal.

Theme Impact 10

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