Alphabet (GOOGL), the Google parent, is heading into its first-quarter earnings with strong momentum, and one analyst expects the growth to continue. Top Guggenheim analyst Michael Morris reiterated a Buy rating on the stock with a $375 price target, pointing to continued strength across its core businesses.
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For context, Alphabet is scheduled to announce its first-quarter results after the market closes on Wednesday, April 29. Wall Street expects the tech giant to report EPS of $2.61 on revenues of $106.8 billion.
Why the Analyst Is Bullish on Alphabet
Morris expects Alphabet to report about $107 billion in revenue for Q1 2026, up roughly 19% from last year, driven by steady growth in Search, stronger YouTube ad revenue, and rapid expansion in Cloud.
Cloud stands out, with growth expected to exceed 50%, supported by strong demand for AI services and a large backlog of signed deals that are yet to be delivered.
At the same time, Search remains resilient despite AI concerns, with usage at record levels, according to Morris. He also expects YouTube to benefit from major global events like the Olympics and elections, which tend to boost advertising demand.
The analyst also sees Alphabet’s heavy investment as a positive. The company plans to spend $175 billion to $185 billion in 2026 to build its AI infrastructure. Morris believes this spending is backed by strong demand and a large Cloud backlog, which should support growth over time, even if it weighs on cash flow in the near term.
Is Alphabet a Good Stock to Buy?
Turning to Wall Street, GOOGL stock carries a Strong Buy consensus rating. Among the 30 analysts covering the stock, 25 have issued Buy recommendations, and five rate it as Hold. Moreover, the average Alphabet stock price target of $385.46 implies a 20% upside potential from current levels.
