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Alphabet Class A
(NASDAQ:GOOGL)
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Rating:78Outperform
Price Target:
$406.00
▲(18.82% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by excellent financial strength and profitability, supported by a very upbeat earnings outlook for Cloud/GenAI demand and backlog visibility. Offsetting factors are weak near-term technical momentum and the elevated investment cycle (rising CapEx, depreciation, and near-term margin pressure), with valuation only moderately supportive given the P/E and low dividend yield.
Positive Factors
Profitability & margins
Alphabet’s top-tier margins reflect durable operating leverage across search, ads and cloud. High gross and operating margins provide ongoing capacity to fund R&D, AI model development and product rollout while absorbing near-term cost pressures, supporting sustained profitability over months.
Negative Factors
High CapEx and depreciation
Escalating infrastructure investment materially raises depreciation and energy costs, pressuring near-term margins and free‑cash‑flow conversion. Over months this increases operating expense load and compresses reported profitability until new capacity and utilization benefits are realized.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & margins
Alphabet’s top-tier margins reflect durable operating leverage across search, ads and cloud. High gross and operating margins provide ongoing capacity to fund R&D, AI model development and product rollout while absorbing near-term cost pressures, supporting sustained profitability over months.
Read all positive factors
Alphabet Class A Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region so investors can see where Google’s core ad, cloud, and YouTube businesses are growing fastest, how reliant the company is on the U.S. market, and how currency and local regulations could impact future revenue.
Breaks down sales by region so investors can see where Google’s core ad, cloud, and YouTube businesses are growing fastest, how reliant the company is on the U.S. market, and how currency and local regulations could impact future revenue.
Data provided by:
The Fly
The FlyAlphabet Class A (GOOGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38T
Dividend Yield0.26%
Average Volume (3M)34.89M
Price to Earnings (P/E)27.3
Beta (1Y)1.20
Revenue Growth17.77%
EPS Growth46.22%
CountryUS
Employees185,719
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)13.24
Shares Outstanding5,853,279,000
10 Day Avg. Volume38,697,945
30 Day Avg. Volume34,894,695
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 Cap1.02
Enterprise Value/Revenue10.54
Enterprise Value/Gross Profit17.45
Enterprise Value/Ebitda20.35
Forecast
1Y Price Target
$428.06Price Target Upside25.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering33
EPS Forecast (FY)14.27
Revenue Forecast (FY)$486.94B
Alphabet Class A Business Overview & Revenue Model
Company Description
Alphabet Inc. provides a diverse range of products and digital platforms to consumers across multiple global regions, including North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's operations are organized ...
How the Company Makes Money
Alphabet generates the majority of its revenue from advertising sold across Google’s properties and network. The largest stream is Google Search and other advertising, where advertisers pay primarily for performance-based ads (commonly cost-per-cl...
Alphabet Class A Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call communicated very strong top‑line growth, exceptional profitability and substantial Cloud acceleration driven by AI demand (63% Cloud revenue growth, nearly 800% growth for GenAI‑built products, and a nearly doubled Cloud backlog). Product adoption and model usage metrics were robust (e.g., 16B tokens/min API usage, Gemini Enterprise PMAU +40% QoQ, 350M paid subscriptions). Offsetting risks include higher operating expenses, large and rising CapEx with associated depreciation, near‑term compute capacity constraints that capped Cloud growth, a small decline in network advertising, and continued losses in Other Bets. On balance, the positive operational and financial momentum substantially outweighs the challenges, although there are clear near‑term cost and capacity headwinds to manage.Positive Updates
Record Consolidated Revenue and Strong Profitability
Consolidated revenue of $109.9 billion, up 22% year‑over‑year (19% in constant currency). Operating income increased 30% to $39.7 billion with an operating margin of 36.1%. Net income rose 81% to $62.6 billion and diluted earnings per share increased 82% to $5.11.
Negative Updates
Rising Costs and Expense Pressure
Total cost of revenue rose 14% to $41.3 billion. Total operating expenses increased 24% to $28.9 billion with R&D up 26%, sales & marketing up 23% and G&A up 21%, driven by higher compensation, depreciation and marketing to support AI products.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Consolidated Revenue and Strong Profitability
Consolidated revenue of $109.9 billion, up 22% year‑over‑year (19% in constant currency). Operating income increased 30% to $39.7 billion with an operating margin of 36.1%. Net income rose 81% to $62.6 billion and diluted earnings per share increased 82% to $5.11.
Read all positive updates
Company Guidance
Guidance highlights: for Q2 management expects an FX tailwind of about +1 percentage point (vs a +3 pp FX tailwind in Q1); full‑year 2026 CapEx was raised to $180–$190 billion (from $175–$185B) and 2027 CapEx is expected to increase significantly versus 2026; Google Cloud backlog nearly doubled sequentially to $462 billion and the company expects to recognize just over 50% of that backlog as revenue over the next 24 months; the company will begin delivering TPU hardware to select customer data centers (TPU hardware revenues may fluctuate quarter‑to‑quarter), with a small percent of those revenues expected later in 2026 and the majority in 2027; Wiz will be reported in Google Cloud and is expected to create a low single‑digit percentage‑point headwind to Cloud’s operating margin for the remainder of 2026.Alphabet Class A Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
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 | 28.51B |
| 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 A Technical Analysis
Positive
341.68
Price Trends
372.29
Negative
340.80
Positive
317.53
Positive
Market Momentum
-1.80
Negative
50.32
Neutral
85.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOGL, the sentiment is Positive. The current price of 341.68 is below the 20-day moving average (MA) of 358.11, below the 50-day MA of 372.29, and above the 200-day MA of 317.53, indicating a neutral trend. The MACD of -1.80 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 85.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOOGL.
Alphabet Class A Risk Analysis
Alphabet Class A disclosed 28 risk factors in its most recent earnings report. Alphabet Class A 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 A Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.60T | 37.80 | 146.69% | 0.41% | 12.76% | 28.91% | |
82 Outperform | $1.53T | 21.57 | 33.22% | 0.32% | 26.18% | 6.07% | |
80 Outperform | $2.85T | 22.75 | 33.13% | 0.93% | 17.87% | 29.63% | |
78 Outperform | $4.38T | 27.34 | 38.98% | 0.26% | 17.77% | 46.22% | |
70 Outperform | $2.62T | 28.69 | 23.34% | ― | 14.22% | 35.55% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
47 Neutral | $41.47B | 849.95 | 0.13% | ― | -2.40% | -98.39% |
* Communication Services Sector Average
GOOGL
Alphabet Class A
361.92
184.81
104.34%
AMZN
Amazon
243.62
21.36
9.61%
AAPL
Apple
313.39
101.82
48.13%
BIDU
Baidu
117.62
29.18
32.99%
META
Meta Platforms
603.12
-121.74
-16.80%
MSFT
Microsoft
383.34
-114.17
-22.95%
Alphabet Class A Corporate Events
Business Operations and StrategyShareholder Meetings
Alphabet Shareholders Approve Stock Plan Expansion, Reelect Board
Positive
Jun 11, 2026
Alphabet shareholders, meeting on June 5, 2026, approved an amendment to the 2021 Stock Plan that adds 200 million Class C shares to the plan’s reserve, bolstering the company’s capacity to grant equity awards and potentially reinforci...
Private Placements and FinancingRegulatory Filings and Compliance
Alphabet Issues Mandatory Convertible Preferred Shares, Sets New Terms
Positive
Jun 5, 2026
Alphabet Inc. completed significant capital markets transactions in early June 2026, entering an underwriting agreement on June 2, 2026 to issue 167,500,000 Series A and 167,500,000 Series B depositary shares, each representing a 1/20th interest i...
Business Operations and StrategyPrivate Placements and Financing
Alphabet announces major equity raise to fund AI
Positive
Jun 4, 2026
On June 1 and 2, 2026, Alphabet moved to raise a total of about $80 billion in equity capital via concurrent underwritten offerings, a new $40 billion at-the-market program for Class A and Class C shares, and a $10 billion private placement with B...
Business Operations and StrategyPrivate Placements and Financing
Alphabet Raises ¥576.9B Through Multi-Tranche Yen Notes
Positive
May 21, 2026
On May 21, 2026, Alphabet Inc. closed an underwritten public offering of ¥576.9 billion in Japanese yen-denominated senior notes, issued under an existing indenture with The Bank of New York Mellon Trust Company, N.A. as trustee. The multi-tr...
Business Operations and StrategyPrivate Placements and Financing
Alphabet Expands Euro and Canadian Dollar Bond Funding
Positive
May 11, 2026
On May 11, 2026, Alphabet Inc. completed concurrent underwritten public offerings of €9 billion in euro-denominated senior notes and C$9.5 billion in Canadian dollar-denominated senior notes, issued under its existing shelf registration. The...
Executive/Board Changes
Alphabet Grants New Long-Term Equity Awards to Executives
Positive
Apr 10, 2026
On April 7, 2026, Alphabet’s board committee approved substantial equity awards for top executives Anat Ashkenazi, Ruth Porat, Philipp Schindler, and Kent Walker, with the grants made on April 8, 2026 in a mix of performance stock units and ...
Executive/Board Changes
Alphabet announces resignation of principal accounting officer
Neutral
Apr 2, 2026
On March 30, 2026, Alphabet Inc. announced that Amie Thuener O’Toole had notified the company of her resignation as vice president, corporate controller, and principal accounting officer, effective April 9, 2026. Alphabet stated that her dep...
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.