Erste Group Bank Increases Earnings Estimates for Alphabet

Key Points

• Erste Group Bank raised Alphabet’s FY2026 EPS estimate to $20.59 from $20.56, slightly above the $20.51 analyst consensus, and projects FY2027 EPS of $14.99.
• Alphabet recently reported strong quarterly results, earning $9.11 per share versus the $2.89 consensus estimate and generating $119.80 billion in revenue, above expectations.
• Analyst sentiment remains positive, with Alphabet holding a consensus “Buy” rating and an average price target of $422.16; Tigress Financial recently lifted its target to $485.

Alphabet Inc. (NASDAQ:GOOGL - Free Report) - Analysts at Erste Group Bank increased their FY2026 earnings per share (EPS) estimates for shares of Alphabet in a research report issued on Friday, September 18th. Erste Group Bank analyst H. Engel now anticipates that the information services provider will post earnings per share of $20.59 for the year, up from their prior estimate of $20.56. The consensus estimate for Alphabet's current full-year earnings is $20.51 per share. Erste Group Bank also issued estimates for Alphabet's FY2027 earnings at $14.99 EPS.

GOOGL has been the subject of several other reports. Rosenblatt Securities restated a "buy" rating and issued a $410.00 price objective on shares of Alphabet in a report on Thursday, September 3rd. Citizens Jmp reaffirmed a "market outperform" rating and set a $515.00 target price on shares of Alphabet in a research note on Wednesday, July 22nd. Needham & Company LLC reaffirmed a "buy" rating and set a $450.00 target price on shares of Alphabet in a research note on Wednesday, June 3rd. BMO Capital Markets set a $465.00 price target on shares of Alphabet and gave the company an "outperform" rating in a research report on Thursday, July 23rd. Finally, Tigress Financial reissued a "strong-buy" rating and issued a $485.00 price target (up from $415.00) on shares of Alphabet in a research note on Thursday. Five research analysts have rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Alphabet currently has a consensus rating of "Buy" and an average target price of $422.16.

Alphabet Stock Performance

NASDAQ:GOOGL opened at $349.54 on Monday. The stock has a market cap of $4.27 trillion, a P/E ratio of 17.56, a price-to-earnings-growth ratio of 1.01 and a beta of 1.22. The firm's fifty day simple moving average is $345.20 and its 200 day simple moving average is $345.18. Alphabet has a twelve month low of $235.84 and a twelve month high of $408.61. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16.

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

Hedge Funds Weigh In On Alphabet

A number of institutional investors and hedge funds have recently made changes to their positions in the business. EMC Capital Management bought a new position in shares of Alphabet during the fourth quarter valued at $33,000. Lifetime Wealth Management P.C. purchased a new position in shares of Alphabet in the 4th quarter worth about $32,000. Core Capital Management & Research inc. bought a new position in Alphabet in the 2nd quarter worth about $41,000. Bard Associates Inc. bought a new position in Alphabet in the 4th quarter worth about $52,000. Finally, Graney & King LLC grew its position in Alphabet by 38.5% during the 2nd quarter. Graney & King LLC now owns 180 shares of the information services provider's stock valued at $64,000 after purchasing an additional 50 shares during the last quarter. Institutional investors own 40.03% of the company's stock.

Insider Transactions at Alphabet

In other news, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the company's stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $18.90, for a total value of $2,232,808.20. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CAO Marsida Saraci sold 449 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total transaction of $149,606.80. Following the completion of the transaction, the chief accounting officer owned 27,386 shares of the company's stock, valued at approximately $9,125,015.20. The trade was a 1.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 450,875 shares of company stock valued at $11,984,482 in the last three months. 11.61% of the stock is currently owned by company insiders.

Alphabet Announces Dividend

The firm also recently announced 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. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Friday, September 4th. Alphabet's payout ratio is 4.42%.

Key Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: AI chip sales add a new revenue stream: Alphabet began recognizing revenue from sales of its internally developed AI chip systems in the second quarter. Investors may view the business as both a potential growth driver and a way to monetize Google’s technology infrastructure. 2 Stocks to Buy as Google Starts Selling Its AI Chips
• Positive Sentiment: Analyst raises price target: Tigress Financial Partners increased its price target for GOOGL to $485, reflecting confidence in Alphabet’s Search, Cloud, YouTube, Gemini and custom-chip opportunities. Alphabet Price Target Raised to $485
• Positive Sentiment: Waymo expands internationally: Alphabet’s autonomous-driving unit plans to launch an all-electric robotaxi service in Singapore by 2028, strengthening the long-term investment case for Alphabet’s “Other Bets” portfolio. Waymo to Bring Autonomous Ride-Hailing to Singapore
• Positive Sentiment: Options activity signals bullish positioning: Investors purchased roughly 520,000 Alphabet call options, above typical volume, indicating increased speculative interest in further upside.
• Neutral Sentiment: Ad-tech ruling avoids a breakup but imposes restrictions: A federal judge ordered Google to share more auction data with publishers and appoint an antitrust monitor, but rejected a forced breakup. Avoiding structural separation limits the immediate risk to Alphabet’s advertising business, while the behavioral remedies could pressure operations and margins. Tech Watchdogs Criticize Google Adtech Ruling
• Negative Sentiment: Higher rates and AI spending remain risks: The Federal Reserve’s rate increase and Alphabet’s heavy investment in AI infrastructure could keep pressure on free cash flow and valuation, even as Cloud backlog and AI demand remain strong.

Alphabet Company Profile

Alphabet Inc is a technology and holding company founded in 2015 through a restructuring of Google. The company is headquartered in Mountain View, California, and operates globally, serving consumers, businesses, advertisers and developers across numerous countries and regions.

Alphabet's largest business is Google Services, which includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and hardware products such as Pixel devices. These products support activities including internet search, digital content distribution, mobile computing, online communications and advertising.

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