Alphabet enters agreement to sell up to $40B of stock
Alphabet entered an equity distribution agreement to sell up to $40.0 billion of Class A and Class C stock through an At-the-Market Program, primarily to meet tax obligations for employee equity grants. Separately, in June 2026, the company issued Class A, Class C, and mandatory convertible preferred stock for $49.6 billion to fund general corporate purposes and AI infrastructure scaling. No shares were sold under the ATM Program as of June 30, 2026.
*this image is generated using AI for illustrative purposes only.
Alphabet has entered into an equity distribution agreement with certain sales agents to sell up to $40.0 billion of its Class A and Class C stock from time to time through an At-the-Market Program (ATM Program). The proceeds of the ATM Program are primarily intended to be used to meet tax obligations associated with employee equity grants. As of June 30, 2026, the company has not sold any shares under the ATM Program.
In June 2026, Alphabet issued a combination of Class A stock, Class C stock, and mandatory convertible preferred stock. This issuance generated aggregate net proceeds of $49.6 billion. The company stated that these funds are to be used for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute.
Capital Raise Details
The following table outlines the capital raising activities disclosed:
| Activity | Type | Amount | Purpose |
|---|---|---|---|
| June 2026 Issuance | Class A, Class C, Mandatory Convertible Preferred Stock | $49.6 billion | General corporate purposes, AI infrastructure, global compute |
| ATM Program | Class A, Class C Stock | Up to $40.0 billion | Tax obligations for employee equity grants |
The ATM Program provides Alphabet with the flexibility to sell shares over time. The agreement allows the company to access capital markets efficiently to manage its tax liabilities related to employee compensation.
How will the issuance of mandatory convertible preferred stock impact Alphabet's earnings per share and existing shareholder dilution?
What specific AI infrastructure projects will the $49.6 billion capital injection prioritize over the next 12 to 24 months?
Will Alphabet's increased capital expenditures on AI compute lead to a sustained rise in free cash flow margins in the long term?
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