By Farah Mourad
Publication Date: 2026-02-03 05:21:00
Key areas to watch
Google Cloud backlog and margin expansion
With backlog reaching $155 billion in the third quarter (Q3), investors are eager for updates on conversion speed and revenue confidence in 2026. Cloud margins will be a key focus, especially after strong performance last quarter.
AI monetization signals
Look for mentions of Gemini’s launch, company gains, or integration with core products like Search and Workspace. Success here could justify the billions of dollars in investments (capex) in the infrastructure.
Capex and free cash flow outlook for 2026
Analysts want to know whether large-scale AI investments are reaching their peak. A weaker capex guide could signal positive free cash flow development and support multiple expansions in the second half of the year (H2).
Segment trends to watch
- Search and YouTube: Stable double-digit growth is expected due to robust advertising demand.
- Google Cloud: remains the fastest growing segment with an expected increase of +35.9% year-on-year and will…
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