Erste Group Bank Comments on Alphabet FY2027 Earnings

Key Points

• Erste Group Bank slightly raised Alphabet’s FY2027 EPS forecast to $15.01 from $14.99, though the estimate remains below the broader consensus of $20.54.
• Alphabet shares opened at $353.78, up 0.3%, while analysts maintained a largely bullish view: the stock carries a consensus “Buy” rating and a $425.72 price target.
• Alphabet’s AI expansion supports its growth outlook, but investors face risks from heavy data-center spending, intensifying competition and a securities-fraud lawsuit related to Gemini’s progress.

Alphabet Inc. (NASDAQ:GOOGL - Free Report) - Investment analysts at Erste Group Bank boosted their FY2027 earnings per share (EPS) estimates for Alphabet in a report released on Thursday, October 8th. Erste Group Bank analyst H. Engel now anticipates that the information services provider will post earnings per share of $15.01 for the year, up from their prior forecast of $14.99. The consensus estimate for Alphabet's current full-year earnings is $20.54 per share.

GOOGL has been the topic of several other reports. Cantor Fitzgerald reiterated an "overweight" rating and set a $420.00 price target on shares of Alphabet in a research report on Monday. Piper Sandler boosted their price objective on shares of Alphabet from $395.00 to $400.00 and gave the company an "overweight" rating in a research note on Monday, September 28th. Citizens Jmp reaffirmed a "market outperform" rating and set a $515.00 target price on shares of Alphabet in a report on Wednesday, July 22nd. Truist Financial set a $420.00 target price on shares of Alphabet and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Finally, Wells Fargo & Company reiterated an "overweight" rating and issued a $417.00 target price (up from $411.00) on shares of Alphabet in a research note on Tuesday, October 6th. Five investment analysts have rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Alphabet currently has an average rating of "Buy" and a consensus price target of $425.72.

Alphabet Stock Up 0.3%

Shares of NASDAQ GOOGL opened at $353.78 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 market cap of $4.33 trillion, a P/E ratio of 17.77, a P/E/G ratio of 1.02 and a beta of 1.21. Alphabet has a 52 week low of $240.51 and a 52 week high of $408.61. The business has a 50-day simple moving average of $345.00 and a two-hundred day simple moving average of $350.40.

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

Institutional Trading of Alphabet

Institutional investors and hedge funds have recently made changes to their positions in the stock. First Citizens Bank & Trust Co. grew its position in Alphabet by 86.7% in the third quarter. First Citizens Bank & Trust Co. now owns 227,361 shares of the information services provider's stock worth $78,230,000 after acquiring an additional 105,563 shares in the last quarter. Roberts Wealth Advisors LLC raised its position in Alphabet by 1.1% during the third quarter. Roberts Wealth Advisors LLC now owns 11,474 shares of the information services provider's stock valued at $3,948,000 after purchasing an additional 121 shares in the last quarter. ASK Capital Investment Managers LLC purchased a new stake in Alphabet during the third quarter valued at about $5,667,000. Q Fund Management Hong Kong Ltd raised its position in Alphabet by 13,435.0% during the third quarter. Q Fund Management Hong Kong Ltd now owns 27,070 shares of the information services provider's stock valued at $9,314,000 after purchasing an additional 26,870 shares in the last quarter. Finally, Citrine Capital LLC increased its position in shares of Alphabet by 3.0% during the 3rd quarter. Citrine Capital LLC now owns 1,997 shares of the information services provider's stock valued at $687,000 after purchasing an additional 59 shares during the last quarter. Hedge funds and other institutional investors own 40.03% of the company's stock.

Insider Buying and Selling

In related news, CAO Marsida Saraci sold 449 shares of the company's stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $333.20, for a total value of $149,606.80. Following the transaction, the chief accounting officer directly owned 27,386 shares in the company, valued at approximately $9,125,015.20. This represents a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Frances Arnold sold 83 shares of the firm's stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $340.45, for a total transaction of $28,257.35. Following the completion of the sale, the director directly owned 19,076 shares in the company, valued at $6,494,424.20. This represents a 0.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 441,399 shares of company stock worth $8,677,053. Insiders own 11.61% of the company's stock.

Alphabet Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Stockholders of record on Monday, September 7th were issued a dividend of $0.22 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.88 annualized dividend and a dividend yield of 0.2%. Alphabet's payout ratio is presently 4.42%.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google launched Gemini 4 Argon for developers, businesses and paying users. The model’s capabilities in coding, finance and legal work could strengthen Alphabet’s position in generative AI and support demand for Google Cloud. Google launches flagship AI model Gemini 4 Argon for developers, businesses
• Positive Sentiment: Google DeepMind and Google Cloud plan to give European researchers access to frontier AI models, potentially expanding adoption, research partnerships and future cloud revenue. Google DeepMind, Google Cloud to allow European researchers access to frontier models
• Positive Sentiment: BNP Paribas raised its Alphabet price target to $450 based on the outlook for Google’s in-house tensor processing units (TPUs), while Cantor Fitzgerald maintained an Overweight rating and a $420 target. Alphabet target bumped to $450 at BNP Paribas on TPU outlook
• Positive Sentiment: Erste Group modestly increased its FY2027 EPS forecast to $15.01 from $14.99. Separately, analysts see potential for Alphabet’s AI chips to become a major revenue opportunity by 2028. Alphabet Could Unlock $100 Billion From AI Chips by 2028, Analyst Says
• Neutral Sentiment: Alphabet continues to lead Meta Platforms in absolute revenue, with both companies showing steady growth. The comparison reinforces Alphabet’s scale but highlights intensifying competition among large AI-driven technology companies. Alphabet vs. Meta Platforms: Here’s What Revenue Trends Tell Investors
• Negative Sentiment: Multiple law firms publicized a securities-fraud class action alleging Alphabet misrepresented the progress and timing of Gemini 3.5 Pro. The investor lead-plaintiff deadline is generally December 1, 2026, adding reputational and potential financial risk.
• Negative Sentiment: Investors remain concerned that accelerated data-center and AI infrastructure spending is outpacing operating cash generation, which could pressure free cash flow even as cloud and AI growth accelerate. Is Alphabet’s Cloud Growth Masking a Paper EPS Gain?
• Negative Sentiment: Apple’s new HomeView product and broader competition from Microsoft, Apple and other technology companies could challenge Google in consumer AI, smart-home devices and infrastructure.

Alphabet Company Profile

Alphabet Inc is a technology and internet services company best known as the parent company of Google. Its primary business, Google Services, includes online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a range of hardware and subscription products.

Alphabet also operates Google Cloud, which provides infrastructure, data analytics, cybersecurity, productivity software, and artificial intelligence services to businesses, governments, and other organizations.

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