Alphabet FY2027 EPS Estimate Boosted by Erste Group Bank

Key Points

• Erste Group Bank raised Alphabet’s FY2027 EPS forecast to $14.74 from $14.51, although that remains below the broader consensus estimate of $19.79.
• Alphabet reported a strong quarter, earning $9.11 per share versus the $2.89 analyst consensus and generating $119.8 billion in revenue, ahead of expectations.
• Analyst sentiment remains broadly positive, with the stock carrying an average “Buy” rating and a $419.86 average price target, though elevated AI infrastructure spending and insider selling remain potential concerns.

Alphabet Inc. (NASDAQ:GOOGL - Free Report) - Equities researchers at Erste Group Bank lifted their FY2027 EPS estimates for Alphabet in a research note issued to investors on Monday, July 27th. Erste Group Bank analyst H. Engel now anticipates that the information services provider will post earnings of $14.74 per share for the year, up from their prior forecast of $14.51. The consensus estimate for Alphabet's current full-year earnings is $19.79 per share.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $6.22. The company had revenue of $119.80 billion during the quarter, compared to analysts' expectations of $117.07 billion. Alphabet had a net margin of 54.77% and a return on equity of 51.32%.

A number of other research analysts have also recently issued reports on GOOGL. Rosenblatt Securities reissued a "neutral" rating and set a $393.00 price objective on shares of Alphabet in a report on Thursday, July 23rd. Royal Bank Of Canada reiterated an "outperform" rating and set a $425.00 target price on shares of Alphabet in a research report on Thursday, July 23rd. Stifel Nicolaus set a $420.00 price target on shares of Alphabet and gave the company a "buy" rating in a report on Thursday, April 30th. Weiss Ratings restated a "buy (b)" rating on shares of Alphabet in a research report on Friday, July 17th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Alphabet in a research note on Monday, June 22nd. Six research analysts have rated the stock with a Strong Buy rating, forty-four have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $419.86.

Alphabet Stock Up 2.2%

Shares of GOOGL opened at $333.71 on Wednesday. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. The company has a 50-day moving average price of $360.45 and a two-hundred day moving average price of $339.07. The stock has a market cap of $4.04 trillion, a price-to-earnings ratio of 16.76, a P/E/G ratio of 0.95 and a beta of 1.24. Alphabet has a 12 month low of $187.82 and a 12 month high of $408.61.

Alphabet Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Monday, September 7th will be given a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 0.3%. The ex-dividend date is Friday, September 4th. Alphabet's dividend payout ratio (DPR) is presently 4.42%.

Insider Transactions at Alphabet

In other news, major shareholder 2019 Gp L.L.C. Gv sold 23,417 shares of the stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $18.88, for a total transaction of $442,112.96. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Frances Arnold sold 112 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $351.28, for a total transaction of $39,343.36. Following the completion of the sale, the director directly owned 18,833 shares of the company's stock, valued at approximately $6,615,656.24. This represents a 0.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 285,049 shares of company stock worth $10,051,351. Corporate insiders own 11.61% of the company's stock.

Institutional Investors Weigh In On Alphabet

Several hedge funds and other institutional investors have recently made changes to their positions in the company. NewEdge Wealth LLC grew its stake in Alphabet by 11.8% in the fourth quarter. NewEdge Wealth LLC now owns 887,209 shares of the information services provider's stock valued at $277,696,000 after acquiring an additional 93,293 shares during the period. PFG Investments LLC raised its position in shares of Alphabet by 2.6% during the first quarter. PFG Investments LLC now owns 89,299 shares of the information services provider's stock worth $25,679,000 after purchasing an additional 2,269 shares during the period. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust bought a new position in shares of Alphabet during the 4th quarter valued at about $28,902,000. Private Advisory Group LLC lifted its holdings in shares of Alphabet by 12.2% during the 4th quarter. Private Advisory Group LLC now owns 24,717 shares of the information services provider's stock valued at $7,736,000 after purchasing an additional 2,678 shares in the last quarter. Finally, W.G. Shaheen & Associates DBA Whitney & Co grew its position in shares of Alphabet by 17.1% in the 4th quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 118,966 shares of the information services provider's stock valued at $37,236,000 after purchasing an additional 17,415 shares during the period. 40.03% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet’s second-quarter results were strong, with revenue rising 24% year over year to $119.8 billion. Google Cloud revenue surged 82% to $24.8 billion, operating income more than tripled to $8.8 billion, and Search revenue grew 17%, supporting the company’s AI monetization and demand outlook. Alphabet earnings report
• Positive Sentiment: Analyst sentiment remains broadly constructive. Phillip Securities upgraded Alphabet to “strong buy,” while KeyCorp maintained an “Overweight” rating and a $445 price target. KeyCorp also sharply raised its FY2026 EPS forecast to $20.48 from $14.41 and lifted its FY2028 estimate to $17.88. Erste Group separately increased its FY2027 EPS forecast to $14.74. Alphabet analyst upgrade
• Positive Sentiment: Several investment commentaries argue that the selloff was excessive given Alphabet’s accelerating Cloud business, $514 billion backlog and early AI revenue opportunities. The company also expanded YouTube’s ecosystem through a multiyear agreement to include Peacock content for YouTube Premium subscribers. YouTube and Peacock agreement
• Neutral Sentiment: KeyCorp made modest cuts to its Q3 2026 EPS estimate, to $2.99 from $3.02, its Q4 estimate to $3.27 from $3.34, and its FY2027 estimate to $15.24 from $15.27. The firm nevertheless retained its bullish rating and price target. Alphabet analyst estimates
• Negative Sentiment: Alphabet raised 2026 capital-expenditure guidance to approximately $195 billion–$205 billion. Quarterly capital spending reached $44.9 billion, pushing free cash flow negative and prompting concerns that AI infrastructure investments could pressure returns, cash generation and future buybacks. Alphabet AI spending concerns
• Negative Sentiment: Additional overhangs include potential European private damages claims following Google’s $1 billion competition fine, scrutiny of Waymo’s emergency-response procedures, and repeated sales by a major shareholder. Broader investor anxiety about AI costs is also weighing on hyperscaler valuations. Google European damages claims

Alphabet Company Profile

Alphabet Inc is the holding company created in 2015 to organize Google and a portfolio of businesses developing technologies beyond Google’s core internet services. Its principal operations are led by Google, which builds and operates consumer-facing products such as Google Search, YouTube, Android, Chrome, Gmail, Google Maps and Google Workspace, as well as advertising platforms (Google Ads and AdSense) that historically generate the majority of its revenue. Google also develops consumer hardware (Pixel phones, Nest smart-home devices, Chromecast) and developer and distribution platforms such as Google Play.

Beyond Google’s consumer and advertising businesses, Alphabet invests in enterprise and infrastructure offerings through Google Cloud, which provides cloud computing, data analytics and productivity services to businesses and institutions.

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