Alphabet (NASDAQ:GOOG) Releases Quarterly Earnings Results, Beats Estimates By $0.23 EPS

Alphabet (NASDAQ:GOOG) posted its quarterly earnings data on Wednesday. The information services provider reported $2.82 EPS for the quarter, topping analysts’ consensus estimates of $2.59 by $0.23, FiscalAI reports. The company had revenue of $113.83 billion for the quarter, compared to the consensus estimate of $111.24 billion. Alphabet had a return on equity of 36.21% and a net margin of 32.81%.The company’s quarterly revenue was up 18.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.15 EPS.

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

• Alphabet says AI momentum is strong: the Gemini app reached >750 million monthly active users and Gemini 3 (including Gemini 3 Pro) has driven rapid adoption and a large increase in token throughput for both consumer and enterprise use.
• Financial performance accelerated — full‑year revenues topped $400 billion, Q4 revenue was $113.8 billion (up 18% YoY), Search revenue grew 17%, Cloud revenue grew 48%, and Q4 operating cash flow hit a record $52.4 billion.
• Alphabet plans a very large capital program for 2026 with CapEx guide of $175B–$185B, and expects materially higher depreciation and infrastructure costs that will pressure P&L and require continued efficiency improvements.
• Google Cloud shows strong enterprise AI traction: backlog rose to $240 billion, generative-AI product revenue grew nearly 400% YoY, Cloud operating income more than doubled, and major partnerships (including Apple and Reliance Jio) expand reach.
• Search and ads are being reworked around AI (AI Mode, AI Overviews, agentic commerce, Direct Offers and the Universal Commerce Protocol), with experiments underway to monetize new conversational experiences but commercial impact is still early and uncertain.

Alphabet Price Performance

GOOG opened at $331.33 on Friday. The firm has a market capitalization of $4.00 trillion, a P/E ratio of 30.65, a PEG ratio of 1.90 and a beta of 1.10. The stock has a fifty day moving average of $322.26 and a 200-day moving average of $269.91. The company has a quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.06. Alphabet has a 12-month low of $142.66 and a 12-month high of $350.15.

Alphabet Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 9th will be paid a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Monday, March 9th. Alphabet’s payout ratio is 8.28%.

More Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Q4 beat — Alphabet reported stronger‑than‑expected EPS and revenue, with Search, YouTube and Cloud all showing meaningful growth; Cloud revenue jumped ~48% and backlog surged, underscoring durable enterprise demand. Read More.
• Positive Sentiment: Gemini / AI adoption — Management highlighted rapid Gemini usage and heavy API token volumes, supporting the case that AI is already lifting ad and cloud monetization. Read More.
• Positive Sentiment: Analyst and institutional support — Several firms raised targets or reiterated bullish views (JPMorgan raised its target recently) and some funds disclosed new/additional GOOG positions, signaling conviction from parts of the buy‑side. Read More.
• Neutral Sentiment: Dividend & capital allocations — Alphabet declared a small quarterly dividend ($0.21/sh), a token return that doesn’t materially change capital allocation but is notable for investors seeking yield.
• Neutral Sentiment: Marketing push for AI products — Google (and peers) are paying creators large sums to promote AI offerings, reflecting a marketing push to accelerate adoption; this helps user/brand awareness but is a near‑term expense. Read More.
• Negative Sentiment: Massive 2026 CapEx guide spooked investors — Management guided to roughly $175–$185B in 2026 capex (about double 2025), triggering fears of near‑term margin pressure and heavier cash deployment than the market expected. That guidance drove the post‑earnings sell‑off. Read More.
• Negative Sentiment: Insider and some fund selling — Reports show notable insider sales and certain funds trimming positions, which amplifies downward pressure when sentiment is shaky after the capex surprise. Read More. Read More.
• Negative Sentiment: Technical/near‑term weakness — The stock dipped below short‑term moving averages post‑release, a signal traders watch that can extend volatility while the market digests the capex plan. Read More.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $370.00 target price on shares of Alphabet in a report on Tuesday, January 20th. Wedbush reaffirmed an “outperform” rating and issued a $370.00 price objective on shares of Alphabet in a research note on Thursday. DA Davidson set a $300.00 target price on shares of Alphabet in a report on Tuesday, November 25th. Guggenheim restated a “buy” rating and set a $375.00 target price on shares of Alphabet in a report on Monday, December 1st. Finally, Truist Financial set a $350.00 price target on shares of Alphabet in a research report on Friday, December 5th. Eight research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $343.47.

Insiders Place Their Bets

In related news, CAO Amie Thuener O’toole sold 2,778 shares of the stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $312.30, for a total value of $867,569.40. Following the completion of the sale, the chief accounting officer directly owned 8,962 shares of the company’s stock, valued at approximately $2,798,832.60. This represents a 23.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder 2017 Gp L.L.C. Gv sold 1,845,308 shares of Alphabet stock in a transaction dated Friday, January 30th. The shares were sold at an average price of $19.00, for a total value of $35,060,852.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 2,037,964 shares of company stock valued at $95,259,727 over the last ninety days. Corporate insiders own 12.99% of the company’s stock.

Institutional Investors Weigh In On Alphabet

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Imprint Wealth LLC acquired a new position in shares of Alphabet in the third quarter worth $31,000. Wealth Watch Advisors INC purchased a new position in Alphabet in the third quarter valued at about $88,000. Measured Wealth Private Client Group LLC acquired a new position in Alphabet in the 3rd quarter worth about $131,000. Parvin Asset Management LLC raised its stake in shares of Alphabet by 35.3% during the 3rd quarter. Parvin Asset Management LLC now owns 663 shares of the information services provider’s stock worth $161,000 after purchasing an additional 173 shares in the last quarter. Finally, Wiser Advisor Group LLC acquired a new stake in shares of Alphabet during the 3rd quarter valued at about $196,000. Hedge funds and other institutional investors own 27.26% of the company’s stock.

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.