Alphabet Class A (GOOGL) AI Stock Analysis

• Market Cap: $3.71T
• Dividend Yield: 0.26%
• Average Volume (3M): 35.92M
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.07
• Revenue Growth: 13.55%
• EPS Growth: 34.26%
• Country: US
• Employees: 185,719
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 2.82
• Shares Outstanding: 5,822,000,000
• 10 Day Avg. Volume: 31,484,897
• 30 Day Avg. Volume: 35,918,908
• PEG Ratio: 0.84
• Price to Book (P/B): 9.13
• Price to Sales (P/S): 9.41
• P/FCF Ratio: 51.76
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 9.17
• Enterprise Value/Gross Profit: 15.38
• Enterprise Value/Ebitda: 20.46
• 1Y Price Target: $380.13
• Price Target Upside: 24.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 32
• EPS Forecast (FY): 11.44
• Revenue Forecast (FY): $469.61B

• Rating: 74 Outperform
• Price Target: $348.00 ▲(13.53% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong underlying financial quality (profitability, cash generation, and balance-sheet strength). It is moderated by weaker technical momentum, premium valuation with a very low dividend yield, and a near-term capital-intensity/margin risk profile from the 2026 investment ramp (reinforced by the recent large debt financing).

Positive Factors

Cash generation

Alphabet’s very large and steadily rising operating cash flow provides durable internal funding for R&D, AI compute and shareholder returns. Strong OCF supports multi-year investments and buffers the business through cyclical ad weakness, sustaining strategic optionality and balance-sheet flexibility.

Cloud acceleration & backlog

Rapid Cloud revenue and margin expansion, plus a $240B backlog, create durable enterprise revenue visibility. Strong commercial traction and improving Cloud operating margins diversify Alphabet’s revenue away from ads and establish a structural, recurring-growth engine with stickier customer relationships.

AI product leadership & efficiency

Large Gemini scale combined with a steep reduction in AI serving costs builds a lasting competitive advantage: broad user engagement increases data and distribution effects while falling unit costs materially improve economics, enabling scalable monetization and margin expansion across products.

Negative Factors

Massive CapEx ramp

A near-doubling of capital guidance is a structural shift raising capital intensity for multiple years. Execution, supply and siting risks plus higher future depreciation increase operating leverage and free-cash-flow pressure, requiring sustained efficiency gains to avoid long-term margin erosion.

Rising leverage

The large multi-currency debt issuance and a sharp 2025 debt increase reduce prior conservatism in the capital structure. Higher long-duration debt raises exposure to interest and refinancing risk and narrows financial flexibility if cash generation weakens during heavy capex execution.

FCF volatility & rising depreciation

FFlow volatility and a material rise in depreciation are durable headwinds: higher non-cash charges lower reported profitability while volatile free cash reduces predictability of buybacks/dividends and constrains the pace at which heavy capex can be self-funded without risking returns.

Alphabet Class A Business Overview & Revenue Model

Company Description

Alphabet Inc. provides 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 segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, platform, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.

How the Company Makes Money

Alphabet generates the majority of its revenue through advertising, primarily from its Google Ads platform, where businesses pay to display ads on Google search results and across its extensive network of websites. In addition to advertising, Alphabet earns revenue from its Google Cloud services, which provide businesses with cloud storage, computing power, and data analytics solutions. Other significant revenue streams include sales from hardware products like Google Pixel phones, Nest smart home devices, and subscription services such as YouTube Premium. Furthermore, Alphabet has formed partnerships with various companies and developers to expand its ecosystem, contributing to its earnings through collaborations and revenue-sharing agreements.

Alphabet Class A Financial Statement Overview

Summary

Strong profitability and scale with steadily rising operating cash flow and a very solid balance sheet. Offsets include sharply slower 2025 revenue growth, a notable 2025 debt step-up, and meaningful 2025 free-cash-flow volatility/decline.

Income Statement

Revenue has grown steadily from 2020 to 2025 (annual growth re-accelerated in 2024 but slowed sharply in 2025), while profitability remains very strong with high gross profit and robust earnings. Net income expanded materially over the period, signaling solid scale and operating leverage. The main weakness is the noticeable deceleration in the most recent year’s revenue growth, which points to a maturing growth profile versus earlier years.

Balance Sheet

The balance sheet is strong, supported by a large and growing equity base and relatively modest leverage in prior years (low debt compared with equity). Total assets and equity have expanded meaningfully, reflecting accumulated profitability. A key watch item is the sharp increase in total debt in 2025 versus 2024, which reduces the conservatism of the capital structure even if absolute leverage still appears manageable given the company’s scale.

Cash Flow

Operating cash flow is consistently large and rising across the period, supporting business durability and reinvestment capacity. Free cash flow remains substantial, but growth has been uneven—down in 2022, up in 2023–2024, and then a pronounced decline in 2025—suggesting higher spend and/or working-capital pressure in the latest year. Overall cash generation is strong, but recent free-cash-flow volatility tempers the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	402.96B	350.02B	307.39B	282.84B	257.64B
Gross Profit	240.43B	203.71B	174.06B	156.63B	146.70B
EBITDA	179.96B	135.39B	97.97B	85.16B	103.52B
Net Income	132.17B	100.12B	73.80B	59.97B	76.03B
Balance Sheet
Total Assets	595.28B	450.26B	402.39B	365.26B	359.27B
Cash, Cash Equivalents and Short-Term Investments	126.84B	95.66B	110.92B	113.76B	139.65B
Total Debt	72.03B	25.46B	27.12B	29.68B	28.39B
Total Liabilities	180.02B	125.17B	119.01B	109.12B	107.63B
Stockholders Equity	415.26B	325.08B	283.38B	256.14B	251.63B
Cash Flow
Free Cash Flow	73.27B	72.76B	69.50B	60.01B	67.01B
Operating Cash Flow	164.71B	125.30B	101.75B	91.50B	91.65B
Investing Cash Flow	-120.29B	-45.54B	-27.06B	-20.30B	-35.52B
Financing Cash Flow	-37.39B	-79.73B	-72.09B	-69.76B	-61.36B

Alphabet Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 306.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOGL, the sentiment is Negative. The current price of 306.52 is below the 20-day moving average (MA) of 316.16, below the 50-day MA of 319.98, and above the 200-day MA of 250.15, indicating a neutral trend. The MACD of -4.29 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 49.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOOGL.

Alphabet Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
META	81 Outperform	$1.65T	27.60	30.24%	0.32%	22.17%	-2.66%
AAPL	80 Outperform	$3.89T	33.42	152.02%	0.38%	―	―
GOOGL	74 Outperform	$3.71T	28.85	35.70%	0.26%	13.55%	34.26%
MSFT	74 Outperform	$2.96T	24.57	34.39%	0.71%	16.67%	28.60%
AMZN	68 Neutral	$2.24T	29.06	22.29%	―	11.48%	50.70%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BIDU	46 Neutral	$41.68B	74.02	2.03%	―	-2.70%	-56.75%

Alphabet Class A Corporate Events

Alphabet Raises Multi-Currency Long-Term Funding via Debt Offering

On February 13, 2026, Alphabet Inc. closed concurrent underwritten public offerings of $20 billion in U.S. dollar-denominated senior notes and £5.5 billion in Sterling-denominated senior notes under its existing shelf registration. The multi-tranche issuance, with maturities ranging from 2029 to 2126 across both currencies, underscores Alphabet’s strategy of tapping global debt markets to secure sizable, long-duration funding that can support its capital needs and provide financial flexibility for future investments and operations.

The most recent analyst rating on (GOOGL) stock is a Buy with a $395.00 price target. To see the full list of analyst forecasts on Alphabet Class A stock, see the GOOGL Stock Forecast page.