Alphabet (GOOGL) Stock: Wall Street Stays Bullish Ahead of Earnings Today

TLDR

• Alphabet announces Q4 2025 earnings February 4 with projected EPS of $2.63 and revenue of $111.3 billion
• Google Cloud expected to deliver $16.2 billion in sales with operating margins expanding to 22.7%
• Stock has rallied 81% over six months following successful Gemini 3 AI model launch
• Google maintains 90% search market share through AI overviews feature
• Company spent $90 billion on AI infrastructure in 2025 with $116 billion projected for 2026

Alphabet reports fourth quarter 2025 results on Wednesday afternoon. Analysts expect earnings of $2.63 per share on revenue of $111.3 billion.

Alphabet Inc., GOOGL

That represents 23% earnings growth and 15% revenue growth versus last year. The company has beaten earnings forecasts in nine straight quarters.

Google Cloud Drives Growth

Google Cloud emerges as the standout performer. Sales are projected to reach $16.2 billion, up 35% from last year.

Operating margins tell an even better story. They’re expected to hit 22.7%, up from 17.5% a year ago.

The cloud business benefits from the AI infrastructure boom. Companies need massive computing power for AI applications. Google rents servers to meet that demand.

Alphabet invested roughly $90 billion in capital spending during 2025. Most went toward building AI data centers.

Analysts predict $116 billion in capex for 2026. Microsoft already spent $72 billion in just six months. Meta plans $115 billion to $135 billion for 2026.

Search Business Remains Dominant

Twelve months ago, Google looked vulnerable after ChatGPT’s surprise success. The company struggled to match competitors’ AI models.

That changed with November’s Gemini 3 launch. The models finally matched OpenAI and Anthropic’s capabilities.

AI overviews proved game-changing for search. These summaries appear atop traditional results. The feature helped Google keep its 90% market share.

Advertising still generates three-quarters of revenue. Ad revenue should grow 13% this quarter, led by search.

YouTube and display ads continue performing well. The core business stays healthy.

Stock Performance and Outlook

Alphabet shares have jumped 81% over six months. The stock is up more than 64% year-over-year.

Roth MKM analyst Rohit Kulkarni lifted his price target to $365 from $310. He kept a Buy rating on the stock.

Kulkarni sees TPU chip partnerships and Waymo expansion as key catalysts. Major sporting events and midterm elections should boost ad spending in late 2026.

Waymo just raised $16 billion at a $126 billion valuation. The self-driving unit operates over 2,500 vehicles across multiple cities. It’s the only U.S. robotaxi service without safety drivers.

Options traders expect a 5.83% post-earnings move. Wall Street rates the stock Strong Buy with 22 Buy ratings and six Holds.

The average price target of $355.76 implies 4.72% upside. Analysts project Google Cloud will generate $16.2 billion in fourth quarter revenue with operating margins expanding to 22.7% as the company continues investing heavily in AI infrastructure.

The post Alphabet (GOOGL) Stock: Wall Street Stays Bullish Ahead of Earnings Today appeared first on Blockonomi.