Mountain View, California-based Alphabet Inc. (GOOGL) is a multinational technology conglomerate holding company offering various products and platforms. With a market cap of $3.3 trillion, GOOGL provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products. The internet media giant is expected to announce its fiscal first-quarter earnings for 2026 in the near term.
Ahead of the event, analysts expect GOOGL to report a profit of $2.76 per share on a diluted basis, down 1.8% from $2.81 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect GOOGL to report EPS of $11.61, up 7.4% from $10.81 in fiscal 2025. Its EPS is expected to rise 14.6% year over year to $13.31 in fiscal 2027.
GOOGL stock has notably outperformed the S&P 500 Index’s ($SPX) 13.7% gains over the past 52 weeks, with shares up 77.2% during this period. Similarly, it considerably outpaced the State Street Communication Services Select Sector SPDR ETF’s (XLC) 12.8% gains over the same time frame.
GOOGL's strong performance is driven by Google Cloud's 55% backlog surge to $240 billion, AI adoption with nearly 75% of Cloud customers using Alphabet's AI products, and Gemini's 750 million+ monthly active users. Additionally, AI-powered Search and YouTube ad growth have contributed to the company's success.
Analysts’ consensus opinion on GOOGL stock is bullish, with a “Strong Buy” rating overall. Out of 54 analysts covering the stock, 46 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” and five give a “Hold.” GOOGL’s average analyst price target is $379.21, indicating a notable potential upside of 38.7% from the current levels.
