TLDR
- Alphabet is planning its first Australian dollar bond sale, targeting around A$5 billion ($3.6 billion)
- The deal would be the largest corporate debt issue ever sold in Australia, beating Apple’s record of $2.25 billion
- Alphabet raised $25 billion through a dollar bond sale earlier this month, attracting $115 billion in investor orders
- In Q2 2026, Alphabet raised its capex plan by $15 billion, with full-year spending now expected between $195 billion and $205 billion
- Wall Street holds a Strong Buy consensus on GOOGL, with an average price target of $422.59, implying around 22% upside
Alphabet is moving into the Australian bond market for the first time, looking to raise around A$5 billion ($3.6 billion). GOOGL stock was up 0.70% in pre-market trading on Monday, with the stock opening at $345.90 on Friday.
The deal has already drawn attention. Chamath De Silva, head of fixed income at Betashares, called it “a historic moment for the Australian corporate bond market.” He noted it would be the first time a US large-cap tech company has issued a Kangaroo bond in almost a decade.
If the deal goes through, it would surpass Apple’s $2.25 billion raise from over a decade ago, making it the largest corporate debt issue ever sold in Australia.
The bond sale includes 3-, 5-, 10-, and 20-year maturities. The shorter-term notes could carry fixed or floating rates, while the 10- and 20-year bonds would be fixed rate only.
ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities are working on the deal. Initial pricing guidance could come as early as Tuesday.
Mark Bayley, a portfolio manager at Kapstream, said: “We’re absolutely interested. It’s probably the equivalent of the SpaceX IPO for the corporate bond market.”
Funding AI at Scale
This Australian deal follows a busy stretch for Alphabet in the debt markets. Earlier this month, the company raised $25 billion through a dollar bond sale and pulled in around $115 billion in investor orders, a sign of strong demand.
Before that, Alphabet completed an $8.48 billion equity offering in June. The company is burning through capital at a rapid pace as it ramps AI infrastructure.
In Q2 2026, Alphabet raised its full-year capex plan by $15 billion. Total spending is now expected to land between $195 billion and $205 billion for the year. The company also reported negative free cash flow of $5.9 billion in Q2, its first negative quarterly free cash flow as a public company.
Q2 earnings came in at $9.11 EPS, well above the $2.89 consensus estimate. Revenue hit $119.80 billion, beating analyst expectations of $117.07 billion.
Institutional Activity
Berkshire Hathaway raised its Alphabet position by 83% in Q2, bringing its holding to around 106 million shares worth $37.9 billion. That makes GOOGL Berkshire’s third-largest US-listed equity holding.
Vanguard and Capital World Investors also added to their positions. Roughly 40% of the stock is held by hedge funds and institutional investors.
On the other side, Agate Pass Investment Management trimmed its stake by 10.9% in Q2, selling 5,336 shares. The firm still holds 43,706 shares worth about $15.6 million, with Alphabet remaining its largest single holding.
Zacks Research downgraded GOOGL from “strong buy” to “hold” during the period, citing valuation and spending concerns.
The average analyst price target sits at $422.59, based on 25 Buy ratings and 5 Hold ratings from 30 Wall Street analysts.
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