Erste Group Bank Raises Earnings Estimates for Alphabet

Key Points

• Erste Group Bank raised its FY2026 earnings estimate for Alphabet to $14.22 per share from $14.12, slightly below the current consensus of $14.28. It also projected FY2027 earnings of $14.47 per share.
• Alphabet’s latest quarterly results beat expectations, with EPS of $5.11 versus the $2.68 estimate and revenue of $109.9 billion, up 21.8% year over year. The company also posted strong profitability, including a 37.92% net margin and 38.99% return on equity.
• Analyst sentiment remains broadly positive, with Alphabet holding an average “Buy” rating and a $362.73 price target, though some firms have maintained more cautious views or downgraded the stock. The company also recently increased its quarterly dividend from $0.21 to $0.22 per share.

Alphabet Inc. (NASDAQ:GOOG - Free Report) - Equities researchers at Erste Group Bank increased their FY2026 earnings estimates for Alphabet in a research report issued to clients and investors on Tuesday, May 12th. Erste Group Bank analyst H. Engel now forecasts that the information services provider will post earnings of $14.22 per share for the year, up from their prior forecast of $14.12. The consensus estimate for Alphabet's current full-year earnings is $14.28 per share. Erste Group Bank also issued estimates for Alphabet's FY2027 earnings at $14.47 EPS.

Alphabet (NASDAQ:GOOG - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The information services provider reported $5.11 earnings per share for the quarter, beating analysts' consensus estimates of $2.68 by $2.43. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The company had revenue of $109.90 billion for the quarter, compared to the consensus estimate of $106.96 billion. During the same quarter in the prior year, the firm earned $2.81 earnings per share. The firm's revenue for the quarter was up 21.8% compared to the same quarter last year.

A number of other analysts have also recently commented on the company. Sanford C. Bernstein reiterated a "market perform" rating and set a $345.00 price objective on shares of Alphabet in a research report on Thursday, February 5th. Piper Sandler reissued an "overweight" rating and issued a $395.00 target price on shares of Alphabet in a research report on Thursday, February 5th. Wedbush reaffirmed an "outperform" rating and set a $370.00 price target on shares of Alphabet in a research report on Thursday, February 5th. Truist Financial set a $385.00 price objective on shares of Alphabet in a research note on Wednesday, April 22nd. Finally, Freedom Capital downgraded shares of Alphabet from a "strong-buy" rating to a "hold" rating in a report on Monday, May 4th. Six equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Alphabet presently has an average rating of "Buy" and an average price target of $362.73.

Alphabet Price Performance

NASDAQ GOOG opened at $397.17 on Friday. The stock has a market capitalization of $4.81 trillion, a price-to-earnings ratio of 30.30, a PEG ratio of 1.71 and a beta of 1.25. Alphabet has a 1-year low of $163.33 and a 1-year high of $399.93. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92. The business's fifty day moving average price is $325.64 and its 200-day moving average price is $316.44.

Hedge Funds Weigh In On Alphabet

Several large investors have recently added to or reduced their stakes in the company. Imprint Wealth LLC purchased a new stake in Alphabet in the 3rd quarter worth $31,000. Manning & Napier Advisors LLC purchased a new position in shares of Alphabet in the third quarter valued at about $32,000. Nvest Wealth Strategies Inc. bought a new position in shares of Alphabet in the fourth quarter worth about $38,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Alphabet during the fourth quarter worth about $38,000. Finally, Bard Associates Inc. purchased a new stake in shares of Alphabet during the fourth quarter worth about $41,000. Hedge funds and other institutional investors own 27.26% of the company's stock.

Insider Buying and Selling at Alphabet

In other news, Director Frances Arnold sold 102 shares of Alphabet stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $371.00, for a total transaction of $37,842.00. Following the transaction, the director directly owned 18,621 shares of the company's stock, valued at $6,908,391. The trade was a 0.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Amie Thuener O'toole sold 617 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $289.63, for a total value of $178,701.71. Following the transaction, the chief accounting officer owned 10,093 shares of the company's stock, valued at approximately $2,923,235.59. This trade represents a 5.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 157,953 shares of company stock valued at $47,767,818 in the last ninety days. 12.99% of the stock is currently owned by company insiders.

Alphabet Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 8th will be given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 0.2%. This is a boost from Alphabet's previous quarterly dividend of $0.21. The ex-dividend date is Monday, June 8th. Alphabet's dividend payout ratio (DPR) is presently 6.41%.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet is drawing bullish attention after reports that Google is exploring SpaceX-linked orbital data centers, reinforcing investor excitement about its long-term AI infrastructure ambitions. Alphabet (GOOGL) Stock: Google Eyes SpaceX Partnership for Orbital Data Center Project
• Positive Sentiment: Recent fund flow disclosures show several institutional investors adding to Alphabet positions, which can support sentiment around the stock’s durability and AI-led growth story. Fund Update: Capital World Investors Just Disclosed New Holdings
• Positive Sentiment: Google’s broader AI rollout remains a tailwind, with articles noting strong cloud growth, Gemini-related product launches, and enthusiasm around Googlebook and other AI initiatives. Google Stock (GOOGL) Rides AI Wave to All-Time High
• Neutral Sentiment: Alphabet completed a record 576.5 billion yen bond sale to fund massive AI capital spending plans. This supports growth, but it also underscores how much cash the company must raise to keep up with the AI race. Alphabet completes record-breaking yen bond issuance
• Negative Sentiment: The yen bond issue was also viewed as a sign of heavier AI spending, which may pressure margins and free cash flow if returns on that investment take longer to materialize. Alphabet (GOOGL) Stock Slides After Historic $3.6B Yen Bond Offering
• Negative Sentiment: There was also a legal/regulatory overhang after a report that Google denied breaching UK law over a suicide forum appearing in search results, adding another reminder of platform-risk and scrutiny. Google denies breaching law by promoting suicide forum linked to 164 UK deaths

Alphabet Company Profile

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.

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