Alphabet's Bond Buyers Pile In as Google Trims Headcount and Capex Climbs
Published on 11/07/2026 at 17:23 | Editorial boerse-global.de
Alphabet's borrowing machine is running hot even as its spending plans raise eyebrows. The company wrapped up a EUR 6 billion senior euro bond sale on Thursday, split across seven tranches, according to a regulatory filing — and demand ran far ahead of supply. Bloomberg reported on Monday that investors placed orders worth more than EUR 17.1 billion, meaning the book was oversubscribed by nearly three times.
The notes mature between 2028 and 2045, with coupons ranging from floating rates up to 5.250%. The maturities are staggered across the curve, spreading the company's repayment obligations over nearly two decades.
Cost discipline reaches the payroll
On the same day the bond sale closed, Google confirmed to Reuters that it has been offering voluntary severance packages to some employees since June. The buyouts cover staff in Canada, France, Germany, Japan and Switzerland, and the company framed them as part of its push to keep costs in check.
The belt-tightening sits alongside a hefty investment programme. Google said roughly a month ago that it would sink $17 billion into its first data centre in Wyoming, naming Tallgrass Energy, Black Hills Energy, American Electric Power and Related Digital as partners. The land in southeastern Wyoming was acquired from Crusoe, Reuters reported; the financial terms of that purchase were not disclosed.
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A quarter of strong growth and heavy outlays
For the third quarter of 2026, Alphabet posted revenue of $127.6 billion, up 25% year on year. Google Cloud revenue more than doubled, climbing 103% to $30.7 billion. Net income attributable to common shareholders came in at $26.2 billion.
Capital expenditure for the quarter reached $51.4 billion, and free cash flow was negative at $9.1 billion — a combination that left investors focused on how much the company is pouring into artificial intelligence.
Investors weigh the bill against the growth
The stock came under pressure after the quarterly report, with concerns about free cash flow weighing on the share price, according to the Associated Press. Growth in Google's search advertising business also fell short of expectations. AP further reported that Alphabet missed analyst estimates on both revenue and earnings per share.
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Chief financial officer Anat Ashkenazi said on 28 October that capital expenditure is expected to rise sharply in 2027. The bond proceeds and the severance offers both feed into the same story: a company funding an expensive build-out while trying to keep its cost base lean.
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