FY2026 EPS Estimates for Alphabet Lifted by Erste Group Bank

Key Points

• Erste Group Bank raised Alphabet’s FY2026 EPS forecast to $20.56 from $20.50 and projects FY2027 EPS of $14.95, slightly above the current FY2026 consensus.
• Alphabet’s latest quarterly results significantly exceeded expectations, with EPS of $9.11 versus the $2.87 consensus and revenue of $119.8 billion, up 24.2% year over year.
• Analysts remain broadly bullish, with a consensus “Buy” rating and average price target of $415.55, although investors continue to monitor regulatory scrutiny and the high costs of Alphabet’s AI investments.

Alphabet Inc. (NASDAQ:GOOG - Free Report) - Stock analysts at Erste Group Bank upped their FY2026 EPS estimates for shares of Alphabet in a research note issued to investors on Thursday, August 27th. Erste Group Bank analyst H. Engel now forecasts that the information services provider will post earnings per share of $20.56 for the year, up from their prior forecast of $20.50. The consensus estimate for Alphabet's current full-year earnings is $20.50 per share. Erste Group Bank also issued estimates for Alphabet's FY2027 earnings at $14.95 EPS.

Alphabet (NASDAQ:GOOG - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The information services provider reported $9.11 EPS for the quarter, topping analysts' consensus estimates of $2.87 by $6.24. The firm had revenue of $119.80 billion during the quarter, compared to analyst estimates of $116.53 billion. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. The business's revenue for the quarter was up 24.2% on a year-over-year basis. During the same period in the previous year, the business posted $2.31 earnings per share.

A number of other equities research analysts have also weighed in on GOOG. Freedom Capital upgraded shares of Alphabet from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 23rd. Morgan Stanley dropped their price target on Alphabet from $415.00 to $400.00 and set an "overweight" rating on the stock in a research note on Thursday, July 23rd. Barclays reaffirmed an "overweight" rating and issued a $425.00 price objective (up from $405.00) on shares of Alphabet in a report on Thursday, July 23rd. Raymond James Financial reiterated a "strong-buy" rating on shares of Alphabet in a research report on Thursday, July 23rd. Finally, JPMorgan Chase & Co. lowered their target price on Alphabet from $460.00 to $420.00 and set an "overweight" rating on the stock in a report on Thursday, July 23rd. Six equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average price target of $415.55.

Alphabet Stock Performance

Shares of GOOG stock opened at $342.88 on Monday. Alphabet has a 12-month low of $206.96 and a 12-month high of $404.47. The company has a current ratio of 2.72, a quick ratio of 2.64 and a debt-to-equity ratio of 0.16. The firm's 50 day moving average is $347.79 and its 200 day moving average is $340.08. The stock has a market capitalization of $4.19 trillion, a P/E ratio of 17.22, a P/E/G ratio of 0.96 and a beta of 1.23.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in GOOG. Castlekeep Investment Advisors LLC purchased a new position in Alphabet during the second quarter valued at approximately $29,000. Nvest Wealth Strategies Inc. bought a new position in shares of Alphabet in the fourth quarter worth approximately $38,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Alphabet in the fourth quarter worth $38,000. Imprint Wealth LLC purchased a new stake in shares of Alphabet in the third quarter worth $31,000. Finally, Bard Associates Inc. bought a new stake in shares of Alphabet during the 4th quarter valued at $41,000. Institutional investors own 27.26% of the company's stock.

Insider Buying and Selling at Alphabet

In other news, CAO Marsida Saraci sold 449 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $333.20, for a total transaction of $149,606.80. Following the completion of the sale, the chief accounting officer owned 27,386 shares of the company's stock, valued at $9,125,015.20. The trade was a 1.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director John L. Hennessy sold 1,050 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $368.63, for a total value of $387,061.50. Following the completion of the sale, the director owned 1,481 shares of the company's stock, valued at $545,941.03. This trade represents a 41.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 451,843 shares of company stock worth $12,343,852. 12.99% of the stock is owned by insiders.

Alphabet Announces Dividend

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

Key Alphabet News

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: AI products are broadening Alphabet’s growth story. Google is expanding AI Mode with flight-price tracking, hotel-booking assistance and loyalty-point comparisons, while Gemini’s new “Personal Intelligence” features are making AI assistance more accessible to mainstream users. A potential Gemini 3.8 Flash release and the hiring of former OpenAI executive Barret Zoph further reinforce Alphabet’s competitive AI position. Google AI Mode article
• Positive Sentiment: Cloud momentum and AI infrastructure remain key bullish catalysts. Analysts point to surging Google Cloud revenue, AI adoption and a reported $514 billion backlog as evidence that Alphabet is gaining ground on Microsoft and Amazon. Wolfe Research named Alphabet a top 2027 pick and set a $460 target, citing accelerating cloud growth. Alphabet’s expanded custom-chip relationship with Marvell could also strengthen its TPU ecosystem and reduce reliance on outside suppliers over time. Google Cloud growth article
• Neutral Sentiment: Technical and valuation commentary is broadly supportive but not a new fundamental catalyst. Analysts continue to view GOOG favorably, and technical analysis identifies support near a key moving-average level. However, the stock remains below its 50-day average, suggesting investors are still weighing growth against execution risks. Alphabet technical analysis
• Negative Sentiment: Regulatory and litigation overhangs persist. Google changed its European spam-policy enforcement to avoid a potential antitrust fine, a concession that may reduce near-term financial risk but could constrain search operations. Alphabet also agreed to a roughly $353 million UK Play Store settlement, while the FTC is reportedly considering a lawsuit over YouTube account suspensions. Multiple law firms separately announced securities-fraud investigations, though these notices do not establish wrongdoing. Google EU spam policy article
• Negative Sentiment: Investors remain alert to the cost of the AI race. Reports that major technology companies have approximately $3 trillion in off-balance-sheet AI commitments, alongside Alphabet’s heavy capital spending and negative free cash flow concerns, could pressure future returns if AI monetization lags investment. Big Tech AI spending article

About Alphabet

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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