Erste Group Bank Predicts Increased Earnings for Alphabet

Alphabet Inc. (NASDAQ:GOOG) – Stock analysts at Erste Group Bank boosted their FY2026 earnings estimates for shares of Alphabet in a report released on Wednesday, February 18th. Erste Group Bank analyst H. Engel now forecasts that the information services provider will post earnings of $11.44 per share for the year, up from their previous forecast of $11.26. The consensus estimate for Alphabet’s current full-year earnings is $8.89 per share. Erste Group Bank also issued estimates for Alphabet’s FY2027 earnings at $13.31 EPS.

Alphabet (NASDAQ:GOOG) last posted its quarterly earnings results on Wednesday, February 4th. The information services provider reported $2.82 EPS for the quarter, topping analysts’ consensus estimates of $2.59 by $0.23. The business had revenue of $113.83 billion during the quarter, compared to analysts’ expectations of $111.24 billion. Alphabet had a return on equity of 35.01% and a net margin of 32.81%.Alphabet’s quarterly revenue was up 18.0% on a year-over-year basis. During the same quarter last year, the company posted $2.15 earnings per share.

Other equities research analysts also recently issued research reports about the company. TD Cowen reaffirmed a “buy” rating and set a $365.00 price target (up previously from $355.00) on shares of Alphabet in a report on Thursday, February 5th. Jefferies Financial Group reissued a “buy” rating and set a $365.00 price target on shares of Alphabet in a report on Monday, January 5th. Pivotal Research reissued a “buy” rating and issued a $420.00 price objective (up previously from $400.00) on shares of Alphabet in a report on Thursday, February 5th. Rosenblatt Securities set a $279.00 target price on Alphabet in a report on Thursday, October 30th. Finally, KeyCorp set a $370.00 price target on shares of Alphabet in a research report on Thursday, February 5th. Eight investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Buy” and an average price target of $343.90.

Alphabet Stock Performance

Shares of NASDAQ GOOG opened at $311.69 on Monday. 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 company has a market capitalization of $3.77 trillion, a P/E ratio of 28.83, a P/E/G ratio of 1.85 and a beta of 1.10. Alphabet has a 12 month low of $142.66 and a 12 month high of $350.15. The stock has a 50 day moving average of $321.00 and a 200-day moving average of $280.89.

Alphabet Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 9th will be given a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.3%. The ex-dividend date is Monday, March 9th. Alphabet’s dividend payout ratio is 7.77%.

Insider Buying and Selling at Alphabet

In related news, CEO Sundar Pichai sold 32,500 shares of the business’s stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $327.30, for a total value of $10,637,250.00. Following the sale, the chief executive officer owned 2,211,872 shares of the company’s stock, valued at $723,945,705.60. The trade was a 1.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Amie Thuener O’toole sold 2,778 shares of the firm’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $312.30, for a total value of $867,569.40. Following the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,112,482 shares of company stock worth $119,145,289 over the last ninety days. Insiders own 12.99% of the company’s stock.

Hedge Funds Weigh In On Alphabet

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Nvest Wealth Strategies Inc. acquired a new position in Alphabet in the fourth quarter valued at $38,000. Imprint Wealth LLC bought a new position in shares of Alphabet in the 3rd quarter worth about $31,000. Bard Associates Inc. acquired a new position in shares of Alphabet in the 4th quarter valued at about $41,000. Manning & Napier Advisors LLC bought a new stake in shares of Alphabet during the 3rd quarter valued at about $32,000. Finally, Towne Trust Company N.A grew its stake in Alphabet by 34.0% during the fourth quarter. Towne Trust Company N.A now owns 134 shares of the information services provider’s stock worth $42,000 after purchasing an additional 34 shares during the period. 27.26% of the stock is owned by institutional investors and hedge funds.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Wall Street bullishness: Several firms (Wells Fargo, Mizuho and others) have upgraded or reiterated bullish ratings and raised price targets (median ~ $370, multiple targets much higher), supporting upside expectations for ad/Gemini growth. ‘Time to Get More Constructive,’ Says Wells Fargo on Alphabet Stock (GOOGL)
• Positive Sentiment: Partnerships expand commercial reach: Alphabet struck a collaboration with Loblaw in Canada to embed Google shopping/AI capabilities, widening retail monetization touchpoints outside core U.S. markets. Alphabet Inc. (GOOGL): Loblaw Companies Limited Enters into New Collaboration
• Positive Sentiment: Product momentum in AI: Google launched Lyria 3 (DeepMind music-generation) in beta inside the Gemini app, showing ongoing product expansion that can drive engagement and new use cases for monetization. Alphabet (GOOGL) Expands AI Reach Amid Market Debate
• Neutral Sentiment: Industry capex context: Bridgewater estimates Big Tech will invest roughly $650B in AI infrastructure in 2026 — a sector-wide capital cycle that helps explain Alphabet’s spending plans but also signals competitive pressure on margins and suppliers. Big Tech to invest about $650 billion in AI in 2026, Bridgewater says
• Neutral Sentiment: Debate over AI capex sustainability: Social and industry commentary highlights that Alphabet is funding massive AI buildouts internally (versus peers using debt), creating long-term strategic advantages for suppliers but stirring free-cash-flow and energy-demand concerns. Alphabet Stock (GOOGL) Opinions on AI Infrastructure Expansion
• Negative Sentiment: Capex and cash-flow anxiety: Several pieces (and investor chatter) point to aggressive AI spending that could pressure free cash flow in 2026 — a headline driver that has weighed on the stock despite Alphabet’s large backlog and revenue growth. Alphabet: Don’t Let The CapEx Scare You Away From A $240B Backlog
• Negative Sentiment: Insider selling and governance headlines: Recent large insider sales (including CEO transactions reported) add short-term selling pressure and raise governance/optics concerns for some investors. Insider Selling: Alphabet (NASDAQ:GOOG) CEO Sells $9,877,400.00 in Stock
• Negative Sentiment: Accounting scrutiny: High-profile skepticism (e.g., Michael Burry commentary) accusing Big Tech of using accounting/depreciation to mask AI costs is adding reputational and analytical headwinds that can amplify volatility. Michael Burry Warns MSFT, GOOG, META Are Using ‘Sinister’ Accounting

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.