Alphabet (NASDAQ:GOOGL) Issues Earnings Results

Key Points

• Alphabet reported quarterly EPS of $2.12, falling $0.90 short of the $3.02 consensus estimate, while posting a 54.77% net margin and 51.32% return on equity.
• Shares rose $4.31 to $324.89 despite trading below their 50-day and 200-day moving averages. Wall Street remains bullish, with a consensus “Buy” rating and an average price target of $425.04.
• Alphabet’s AI outlook received potential boosts from reported OpenAI interest in Google’s TPUs and the launch of Gemini 4 Carbon, though regulatory penalties in South Korea and a proposed securities lawsuit add risks.

Alphabet (NASDAQ:GOOGL - Get Free Report) issued its quarterly earnings results on Wednesday. The information services provider reported $2.12 EPS for the quarter, missing the consensus estimate of $3.02 by ($0.90), Zacks reports. Alphabet had a net margin of 54.77% and a return on equity of 51.32%.

Alphabet Stock Performance

GOOGL traded up $4.31 during trading on Wednesday, hitting $324.89. The stock had a trading volume of 55,252,986 shares, compared to its average volume of 30,413,854. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72. The firm has a market capitalization of $3.97 trillion, a P/E ratio of 16.32, a PEG ratio of 0.92 and a beta of 1.21. The company's 50-day moving average price is $341.89 and its 200 day moving average price is $340.66. Alphabet has a twelve month low of $267.67 and a twelve month high of $408.61.

Insider Buying and Selling

In other news, Director Frances Arnold sold 83 shares of the firm's stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $340.45, for a total value of $28,257.35. Following the completion of the sale, the director owned 19,076 shares in the company, valued at approximately $6,494,424.20. This trade represents a 0.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last ninety days, insiders have sold 247 shares of company stock worth $83,288. 11.61% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts have recently commented on GOOGL shares. Pivotal Research reiterated a "buy" rating and set a $475.00 target price (up from $470.00) on shares of Alphabet in a research report on Thursday, July 23rd. UBS Group reissued a "neutral" rating and issued a $380.00 price objective (up from $379.00) on shares of Alphabet in a report on Wednesday, October 14th. Barclays restated an "overweight" rating and set a $425.00 target price (up from $405.00) on shares of Alphabet in a research report on Thursday, July 23rd. Truist Financial set a $420.00 target price on shares of Alphabet and gave the stock a "buy" rating in a research report on Thursday, July 23rd. Finally, Evercore reaffirmed an "outperform" rating and issued a $450.00 target price on shares of Alphabet in a report on Wednesday, September 16th. Five investment analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Alphabet has a consensus rating of "Buy" and an average target price of $425.04.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: OpenAI reportedly plans to purchase or use Google’s custom Tensor Processing Units (TPUs), potentially creating a major new customer for Google Cloud and strengthening Alphabet’s position in the AI-chip market. Alphabet is also expanding TPU availability through Oracle Cloud. Google launches Gemini 4 Carbon AI model with cybersecurity focus
• Positive Sentiment: Google introduced Gemini 4 Carbon, an AI model focused on cybersecurity, and launched a Connected Apps Platform that allows businesses to link applications with Google Search and Gemini. These initiatives could support AI adoption, cloud demand and longer-term monetization. As AI agents reshape the web, Google opens Gemini and Search to more apps
• Positive Sentiment: Analysts expect third-quarter revenue of approximately $128.2 billion and earnings per share of $3.02. Investors are particularly watching cloud growth, advertising trends, AI-driven Search performance and management’s return on investment from data-center spending. What to expect from Alphabet's earnings after market close today
• Neutral Sentiment: Alphabet remains well below its 52-week high and below its 50-day and 200-day moving averages, leaving the stock sensitive to an earnings beat or disappointment. Options traders are pricing a potentially large post-earnings move.
• Negative Sentiment: South Korea fined Google and Apple a combined 63.7 billion won for allegedly steering app developers toward their payment systems and delaying app reviews. The penalty adds to Alphabet’s broader regulatory and app-store risks. South Korea fines Google and Apple over unfair app market practices
• Negative Sentiment: Multiple law firms publicized a securities class action alleging Alphabet misrepresented the development timeline and training-data setbacks of Gemini 3.5 Pro. The lead-plaintiff deadline is December 1, 2026; the litigation creates reputational and potential financial risk, although the allegations have not been proven. Levi and Korsinsky Alphabet investor lawsuit alert

About Alphabet

Alphabet Inc is a technology holding company best known for its Google subsidiary. Google operates a global internet-services business centered on online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a broad range of cloud-based productivity and collaboration tools.

Google Cloud provides infrastructure, data analytics, cybersecurity, artificial intelligence, and enterprise software services to businesses, governments, and other organizations. Alphabet also develops consumer hardware, including Pixel devices and products for connected homes, while investing in emerging businesses through its “Other Bets” segment, including autonomous transportation and life sciences initiatives.

Alphabet was established in 2015 as part of a corporate restructuring that made Google a subsidiary and provided a separate structure for its expanding portfolio of businesses.

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