GOOGLAAPLMETAPYPL
GOOG 3Q25: A Clearer Path to $100Bn GCP
FUNDA
TPU scarcity and Apple/Anthropic demand point to GCP growth >40% in FY26; backlog +46% and margins rising.
We successfully doubled down on our GOOG bullish call from last quarter.
We believe the most critical factor impacting Google’s valuation this quarter is GCP acceleration. Only with TPU + Gemini driving GCP growth can Google’s overall valuation expand upward.
In our Preview, beyond our Q2-initiated thesis on AI-driven advertising revenue acceleration, we conducted in-depth research on GCP and TPU, projecting GCP growth could accelerate to 40%+ for FY26, with quarterly growth rates potentially approaching 45%. We may have been among the first research institutions to raise GCP FY26 growth estimates above 25%.
Beyond GCP, throughout our Preview research and discussions over the month prior to publication, we consistently highlighted that TPU supply is extremely constrained, with all AI labs across the industry seeking TPUs.
Results Summary
Continue reading with FUNDA
This report is available to subscribers. Sign in or subscribe to read the full analysis.