Alphabet Class C (GOOG)
NASDAQ:GOOG
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Alphabet Class C
(NASDAQ:GOOG)
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Rating:78Outperform
Price Target:
$435.00
▲(28.17% Upside)
Action:ReiteratedDate:05/01/26
GOOG scores well on financial performance (elite margins, strong balance sheet, and substantial cash generation) and is supported by a strong earnings-call outlook driven by AI and Cloud demand/backlog. The score is tempered by technically overbought conditions that raise near-term pullback risk and a valuation that is not cheap with a minimal dividend yield.
Positive Factors
High profitability and durable margins
Alphabet's very high gross and net margins reflect dominant ad platforms and scalable software businesses. Durable margin structure supports reinvestment in AI and cloud, funds dividends/buybacks, and provides resilience to cyclical ad slowdowns over the next 2–6 months.
Negative Factors
Rising CapEx and depreciation pressure
Substantially higher capital spending increases fixed costs and future depreciation, pressuring near-term operating margins. If revenue growth slows or backlog converts more slowly, elevated CapEx could weigh on free cash flow and margin expansion over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and durable margins
Alphabet's very high gross and net margins reflect dominant ad platforms and scalable software businesses. Durable margin structure supports reinvestment in AI and cloud, funds dividends/buybacks, and provides resilience to cyclical ad slowdowns over the next 2–6 months.
Read all positive factors
Alphabet Class C (GOOG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.66T
Dividend Yield0.26%
Average Volume (3M)18.09M
Price to Earnings (P/E)13.9
Beta (1Y)1.15
Revenue Growth17.77%
EPS Growth46.22%
CountryUS
Employees185,719
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)13.24
Shares Outstanding5,456,336,400
10 Day Avg. Volume13,456,012
30 Day Avg. Volume18,087,363
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)9.13
Price to Sales (P/S)9.41
P/FCF Ratio51.76
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue11.09
Enterprise Value/Gross Profit18.37
Enterprise Value/Ebitda21.42
Forecast
1Y Price Target
$427.00Price Target Upside25.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)13.58
Revenue Forecast (FY)$481.45B
Alphabet Class C Business Overview & Revenue Model
Company Description
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services...
How the Company Makes Money
Alphabet generates the majority of its revenue from advertising sold by Google. The core advertising model centers on (1) Google Search and other Google-owned surfaces (e.g., search results and other Google properties) where advertisers pay to dis...
Alphabet Class C Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The earnings call conveyed very strong top-line and profitability momentum driven by AI and Google Cloud — including exceptional Cloud revenue growth (63%), a nearly doubled backlog ($462B), robust improvements in operating income and net income, and meaningful subscription and model adoption milestones. Management flagged near-term compute capacity constraints, increasing CapEx and depreciation headwinds, a modest decline in network ads, and ongoing losses in Other Bets. On balance the call emphasized accelerating demand for AI products, record results across multiple metrics, and plans to invest aggressively to capture further opportunity while acknowledging operational and cost challenges.Positive Updates
Record Consolidated Revenue and Strong Profitability
Consolidated revenue of $109.9B, up 22% year-over-year (19% in constant currency). Operating income increased 30% to $39.7B with operating margin of 36.1%. Net income rose 81% to $62.6B and diluted EPS increased 82% to $5.11.
Negative Updates
Compute Capacity Constraints and Allocation Challenges
Management acknowledged near-term compute constraints limiting ability to fully meet cloud demand; TPU hardware sales and hardware shipments will cause quarter-to-quarter revenue fluctuations. Company plans significant CapEx increases to address capacity but expects 2027 CapEx to rise materially.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Consolidated Revenue and Strong Profitability
Consolidated revenue of $109.9B, up 22% year-over-year (19% in constant currency). Operating income increased 30% to $39.7B with operating margin of 36.1%. Net income rose 81% to $62.6B and diluted EPS increased 82% to $5.11.
Read all positive updates
Company Guidance
Alphabet updated FY2026 CapEx to $180–$190 billion (from $175–$185B) to include the Intersect acquisition and said 2027 CapEx will rise significantly; it expects an approx. 1 percentage‑point FX tailwind to consolidated revenue in Q2 (vs. a 3pp tailwind in Q1); Google Cloud backlog nearly doubled sequentially to $462 billion with just over 50% of that backlog expected to convert to revenue over the next 24 months; the company will begin recognizing a small percent of TPU hardware sales later this year (with the majority of TPU revenue expected in 2027); the Wiz acquisition is expected to impose a low single‑digit percentage‑point headwind to Cloud operating margin for the remainder of 2026; and the Board approved a 5% increase in the quarterly dividend.Alphabet Class C Financial Statement Overview
Summary
Income Statement
93
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 422.57B | 402.96B | 350.02B | 307.39B | 282.84B | 257.64B |
| Gross Profit | 255.12B | 240.43B | 203.71B | 174.06B | 156.63B | 146.70B |
| EBITDA | 218.81B | 179.96B | 135.39B | 97.97B | 85.16B | 103.52B |
| Net Income | 160.21B | 132.17B | 100.12B | 73.80B | 59.97B | 76.03B |
Balance Sheet | ||||||
| Total Assets | 703.92B | 595.28B | 450.26B | 402.39B | 365.26B | 359.27B |
| Cash, Cash Equivalents and Short-Term Investments | 126.84B | 126.84B | 95.66B | 110.92B | 113.76B | 139.65B |
| Total Debt | 90.48B | 59.29B | 25.46B | 27.12B | 29.68B | 28.39B |
| Total Liabilities | 225.17B | 180.02B | 125.17B | 119.01B | 109.12B | 107.63B |
| Stockholders Equity | 478.75B | 415.26B | 325.08B | 283.38B | 256.14B | 251.63B |
Cash Flow | ||||||
| Free Cash Flow | 64.43B | 73.27B | 72.76B | 69.50B | 60.01B | 67.01B |
| Operating Cash Flow | 174.35B | 164.71B | 125.30B | 101.75B | 91.50B | 91.65B |
| Investing Cash Flow | -167.49B | -120.29B | -45.54B | -27.06B | -20.30B | -35.52B |
| Financing Cash Flow | 7.89B | -37.39B | -79.73B | -72.09B | -69.76B | -61.36B |
Alphabet Class C Technical Analysis
Positive
339.40
Price Trends
306.98
Positive
314.20
Positive
272.55
Positive
Market Momentum
8.29
Negative
73.01
Negative
95.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOG, the sentiment is Positive. The current price of 339.4 is above the 20-day moving average (MA) of 304.27, above the 50-day MA of 306.98, and above the 200-day MA of 272.55, indicating a bullish trend. The MACD of 8.29 indicates Negative momentum. The RSI at 73.01 is Negative, neither overbought nor oversold. The STOCH value of 95.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOOG.
Alphabet Class C Risk Analysis
Alphabet Class C disclosed 28 risk factors in its most recent earnings report. Alphabet Class C reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alphabet Class C Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $3.08T | 21.63 | 33.61% | 0.44% | 17.87% | 29.63% | |
82 Outperform | $4.11T | 30.94 | 159.94% | 0.41% | 12.76% | 28.91% | |
78 Outperform | $4.66T | 13.90 | 35.00% | 0.26% | 17.77% | 46.22% | |
76 Outperform | $1.55T | 13.54 | 33.22% | 0.32% | 26.18% | 6.07% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $494.19B | 27.89 | 57.35% | 1.00% | 14.87% | 29.81% | |
46 Neutral | $41.88B | 62.07 | 1.73% | ― | -2.93% | -81.11% |
* Communication Services Sector Average
GOOG
Alphabet Class C
379.64
215.01
130.60%
AAPL
Apple
276.83
79.18
40.06%
BIDU
Baidu
127.48
36.25
39.73%
META
Meta Platforms
610.41
24.93
4.26%
MSFT
Microsoft
413.62
-17.38
-4.03%
ORCL
Oracle
180.29
34.06
23.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.