Alphabet (NASDAQ:GOOG) Issues Earnings Results

Alphabet (NASDAQ:GOOG) issued its quarterly earnings results on Wednesday. The information services provider reported $5.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.64 by $2.47, Zacks reports. Alphabet had a return on equity of 41.25% and a net margin of 37.92%.The firm had revenue of $109.90 billion for the quarter, compared to analyst estimates of $106.96 billion. During the same period last year, the company earned $2.81 EPS. The firm’s quarterly revenue was up 21.8% on a year-over-year basis.

Here are the key takeaways from Alphabet’s conference call:

• Alphabet reported consolidated revenue of $109.9 billion (up 22% Y/Y), net income up 81% to $62.6 billion, and an operating margin of 36.1%, reflecting strong overall financial performance.
• Google Cloud accelerated, with revenue up 63% to over $20 billion, operating income tripling and margin rising to 32.9%, while backlog nearly doubled sequentially to $462 billion (just over 50% expected to convert to revenue within 24 months).
• AI product and adoption momentum remains strong — consumer AI subscriptions hit 350 million, Gemini Enterprise paid monthly active users grew 40% quarter?over?quarter, and first?party models now process over 16 billion tokens per minute via APIs.
• Alphabet is materially increasing investment and costs — Q1 CapEx was $35.7 billion, full?year CapEx guidance raised to $180–$190 billion with 2027 expected to rise further, and higher depreciation, energy and compensation are pressuring expenses.
• The company will begin selling TPU hardware to select customers (TPU hardware is included in the Cloud backlog with most related revenue expected in 2027), which expands addressable market but introduces revenue timing variability.

Alphabet Stock Performance

NASDAQ:GOOG opened at $381.94 on Friday. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $4.62 trillion, a price-to-earnings ratio of 29.13, a PEG ratio of 2.15 and a beta of 1.13. The firm’s fifty day simple moving average is $312.44 and its 200 day simple moving average is $307.77. Alphabet has a twelve month low of $149.49 and a twelve month high of $382.63.

Alphabet Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 8th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Monday, June 8th. This is a positive change from Alphabet’s previous quarterly dividend of $0.21. Alphabet’s dividend payout ratio (DPR) is presently 7.77%.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Q1 earnings beat on both EPS and revenue; Google Cloud grew ~63% and management disclosed a multi?hundred?billion backlog that gives multi?year revenue visibility. Alphabet’s cloud unit beats estimates (Reuters)
• Positive Sentiment: Wall Street is raising price targets and upgrading ratings after the quarter (TD Cowen, Scotiabank, JPMorgan and others lifted targets), reinforcing near?term upside momentum. TD Cowen raises price target Scotiabank raises price target
• Positive Sentiment: Management signaled continued massive AI investment: capex guidance jumped (2026 capex ~ $180–190B with “significant” further spend in 2027), which investors interpret as a commitment to scaling AI infrastructure and revenue monetization. Alphabet ups 2026 capex (CNBC)
• Positive Sentiment: Product and monetization traction: Gemini AI is being rolled into cars and Google is expanding paid subscriptions (YouTube/Google One), supporting faster ad and recurring revenue growth. Gemini rolling out to cars (TechCrunch)
• Positive Sentiment: Notable institutional interest: high?profile funds (including ARK-related moves) and upgrades are showing investor conviction post?earnings. Cathie Wood/ARK pivot (TipRanks)
• Neutral Sentiment: Operational updates: Waymo expansion and new data center power deals (OGE/OG&E) are constructive for long?term growth but are multi?year catalysts rather than immediate earnings drivers. OGE to power new Google data centers (Reuters) Waymo expansion (Business Insider)
• Negative Sentiment: Regulatory risk: European regulators are probing some Google AI search features and keyword?bidding practices in Italy and Switzerland — these could lead to fines, restrictions or product changes that affect ads/monetization. Italy asks EU to investigate Google AI search (Reuters) Switzerland probe on keyword bidding (Reuters)
• Negative Sentiment: Corporate governance signal: heavy insider sales were noted in filings and public data; while not uncommon at large firms, persistent selling can be a watch item for sentiment. Insider selling and market commentary (Quiver Quantitative)

Wall Street Analyst Weigh In

GOOG has been the topic of a number of research analyst reports. Scotiabank reiterated an “outperform” rating and issued a $450.00 price target (up from $400.00) on shares of Alphabet in a report on Thursday. Wedbush reiterated an “outperform” rating and issued a $370.00 price target on shares of Alphabet in a report on Thursday, February 5th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $370.00 price target on shares of Alphabet in a report on Tuesday, January 20th. Pivotal Research reiterated a “buy” rating and issued a $470.00 price target (up from $420.00) on shares of Alphabet in a report on Wednesday. Finally, TD Cowen lifted their price target on shares of Alphabet from $375.00 to $450.00 and gave the company a “buy” rating in a report on Thursday. Seven investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Alphabet currently has an average rating of “Buy” and an average target price of $362.73.

Insider Buying and Selling at Alphabet

In related news, CAO Amie Thuener O’toole sold 955 shares of Alphabet stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $298.00, for a total transaction of $284,590.00. Following the transaction, the chief accounting officer owned 9,918 shares in the company, valued at approximately $2,955,564. The trade was a 8.78% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Sundar Pichai sold 32,500 shares of Alphabet stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $335.18, for a total transaction of $10,893,350.00. Following the transaction, the chief executive officer owned 2,179,372 shares in the company, valued at $730,481,906.96. The trade was a 1.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 191,884 shares of company stock worth $59,121,365. Insiders own 12.99% of the company’s stock.

Hedge Funds Weigh In On Alphabet

Several hedge funds and other institutional investors have recently bought and sold shares of GOOG. Mascagni Wealth Management Inc. boosted its position in shares of Alphabet by 3.1% in the fourth quarter. Mascagni Wealth Management Inc. now owns 1,116 shares of the information services provider’s stock valued at $350,000 after acquiring an additional 34 shares during the period. Morse Asset Management Inc boosted its position in shares of Alphabet by 3.3% in the third quarter. Morse Asset Management Inc now owns 1,093 shares of the information services provider’s stock valued at $266,000 after acquiring an additional 35 shares during the period. Endeavor Private Wealth Inc. grew its position in Alphabet by 0.6% in the 4th quarter. Endeavor Private Wealth Inc. now owns 5,675 shares of the information services provider’s stock worth $1,781,000 after purchasing an additional 36 shares during the last quarter. Advocacy Wealth Management LLC increased its holdings in shares of Alphabet by 1.1% during the 4th quarter. Advocacy Wealth Management LLC now owns 4,168 shares of the information services provider’s stock worth $1,308,000 after purchasing an additional 44 shares during the period. Finally, Wood Tarver Financial Group LLC increased its holdings in shares of Alphabet by 2.8% during the 4th quarter. Wood Tarver Financial Group LLC now owns 1,611 shares of the information services provider’s stock worth $505,000 after purchasing an additional 44 shares during the period. 27.26% of the stock is owned by institutional investors and hedge funds.

About Alphabet

Alphabet Inc (NASDAQ: GOOG) is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as “Other Bets.” Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company’s history.

Alphabet’s core business centers on internet search and advertising, with Google Search and the company’s ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.