Alphabet’s (GOOGL) stock has enjoyed a strong run, rising 2.7% over the past week, 8.6% over the past month, and an impressive 71.5% over the past year. Wall Street’s analysts are firmly bullish, with a consensus rating of StrongBuy and a 12‑month average price target of $354.36, implying further upside from the last end‑of‑day price of $343.69. This optimistic consensus reflects growing confidence in Alphabet’s earnings power, especially in search advertising, YouTube, and its fast‑evolving AI capabilities.
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Among the most closely watched voices is Justin Post of Bank of America, who reiterated his Buy rating on Alphabet Class A on February 2, 2026, and maintained a price target of $370.00. That target points to additional upside from current levels and underscores his view that Alphabet can continue to outperform as it executes on both its core ad business and newer AI and cloud initiatives. Post sees the upcoming fourth‑quarter report as an “upside quarter,” expecting Alphabet to beat Wall Street’s revenue and earnings forecasts.
Post is calling for fourth‑quarter revenue of $95.9 billion and earnings per share of $2.65, slightly ahead of consensus expectations of $95.2 billion and $2.64. He believes the digital advertising backdrop is healthy, helped by strong results from peers like Meta that signal a stable ad market. Within Alphabet, he expects search revenue growth of about 15% compared to the Street’s 13%, and YouTube growth of 14–15% versus 13% expected, supported by what he sees as accelerating usage following the release of Gemini 3 and rising engagement across Alphabet’s platforms.
Looking ahead, Post argues that management’s commentary on first‑quarter trends and 2026 spending will be crucial for the stock. He now estimates first‑quarter 2026 revenue of $90.1 billion and EPS of $2.56, slightly above consensus, and has raised his 2026 capex forecast by 14% to $139 billion, expecting guidance near $140 billion versus the Street’s $119 billion. He highlights potential positives on the upcoming call: stronger‑than‑expected search performance, data showing strong traction for the Gemini app and AI modes, improving Google Cloud trends versus Azure as Gemini 3.0 and TPUs gain traction, and AI‑driven efficiency that could support operating margins. On the risk side, he flags the possibility of search results merely matching high expectations, less ad upside versus Meta, possible margin pressure as Alphabet builds out capacity, and one‑off cost surprises.
Post is ultimately constructive on Alphabet’s longer‑term prospects, particularly into 2026, where he sees upside in both Search and Cloud. He believes a growing share of Google searches will be served in AI‑native formats, potentially boosting user engagement, conversion rates, and monetization. In cloud, he argues that Gemini 3.0 and Alphabet’s TPUs are increasingly differentiating its offerings and could help secure new large‑scale deals, even as he acknowledges risks from Alphabet’s elevated valuation and intensifying AI competition. Justin Post is a well‑regarded voice on the stock: this 5‑star analyst ranks #54 out of 11,984 tracked experts, with a success rate of about 68.65% and an average return of 25.00% per rating. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.