FY2026 EPS Estimates for Alphabet Raised by Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Alphabet to $14.22 from $14.12, with FY2027 EPS projected at $14.47. The new forecast is just below the current consensus estimate of $14.29 for FY2026.
• Alphabet’s latest quarterly results beat expectations, posting $5.11 EPS versus the $2.64 consensus and revenue of $109.9 billion versus $106.98 billion expected. The company also reported strong profitability, including a 38.99% return on equity.
• Analyst sentiment remains broadly positive, with 47 Buy ratings, 2 Strong Buy ratings, and a consensus rating of “Moderate Buy.” The average price target sits at $407.86, while Alphabet’s stock recently traded near its 52-week high.

Alphabet Inc. (NASDAQ:GOOGL - Free Report) - Equities researchers at Erste Group Bank increased their FY2026 EPS estimates for Alphabet in a research report issued on Tuesday, May 12th. Erste Group Bank analyst H. Engel now forecasts that the information services provider will earn $14.22 per share for the year, up from their previous forecast of $14.12. The consensus estimate for Alphabet's current full-year earnings is $14.29 per share. Erste Group Bank also issued estimates for Alphabet's FY2027 earnings at $14.47 EPS.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.64 by $2.47. Alphabet had a return on equity of 38.99% and a net margin of 37.92%.The firm had revenue of $109.90 billion for the quarter, compared to the consensus estimate of $106.98 billion.

Other equities research analysts also recently issued research reports about the stock. Needham & Company LLC upped their price target on shares of Alphabet from $400.00 to $450.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Freedom Capital downgraded shares of Alphabet from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. Wall Street Zen raised shares of Alphabet from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Raymond James Financial raised shares of Alphabet from a "moderate buy" rating to a "strong-buy" rating in a research note on Thursday, January 22nd. Finally, New Street Research increased their price objective on Alphabet from $380.00 to $450.00 and gave the stock a "buy" rating in a report on Monday, May 4th. Two equities research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $407.86.

Alphabet Stock Performance

Alphabet stock opened at $401.07 on Friday. The firm's 50 day simple moving average is $327.43 and its 200-day simple moving average is $316.71. The company has a market cap of $4.86 trillion, a P/E ratio of 30.59, a price-to-earnings-growth ratio of 1.72 and a beta of 1.26. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92. Alphabet has a fifty-two week low of $162.00 and a fifty-two week high of $403.70.

Alphabet Increases Dividend

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

Insider Activity at Alphabet

In other news, insider John Kent Walker sold 47,574 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $301.45, for a total transaction of $14,341,182.30. Following the completion of the sale, the insider owned 13,227 shares in the company, valued at approximately $3,987,279.15. This represents a 78.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director John L. Hennessy sold 1,050 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $303.41, for a total value of $318,580.50. Following the completion of the transaction, the director directly owned 4,631 shares in the company, valued at $1,405,091.71. The trade was a 18.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 157,953 shares of company stock valued at $47,767,818. Insiders own 11.61% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in shares of Alphabet by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 528,969,322 shares of the information services provider's stock worth $165,567,398,000 after purchasing an additional 12,531,695 shares during the last quarter. State Street Corp grew its holdings in Alphabet by 1.8% in the 2nd quarter. State Street Corp now owns 229,954,269 shares of the information services provider's stock valued at $40,524,841,000 after buying an additional 4,008,374 shares during the last quarter. Geode Capital Management LLC grew its holdings in Alphabet by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 146,193,037 shares of the information services provider's stock valued at $45,625,595,000 after buying an additional 2,666,676 shares during the last quarter. Norges Bank bought a new position in Alphabet in the 4th quarter worth approximately $30,534,239,000. Finally, Bank of America Corp DE increased its position in Alphabet by 4.9% in the 4th quarter. Bank of America Corp DE now owns 69,108,183 shares of the information services provider's stock worth $21,630,861,000 after buying an additional 3,218,852 shares during the period. 40.03% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet completed its first-ever yen-denominated bond sale, raising 576.5 billion yen ($3.6 billion). The record-breaking deal expands its funding sources and should help support continued AI infrastructure spending without relying solely on U.S. dollar debt. Alphabet completes record-breaking yen bond issuance
• Positive Sentiment: Recent coverage suggests Alphabet is benefiting from stronger investor confidence in its AI and cloud strategy, with analysts and market commentary pointing to a potential rerating of the stock as earnings and long-term growth expectations improve. Why The Market Is Re-Rating Google Stock
• Positive Sentiment: Alphabet’s Waymo business and broader AI efforts continue to be highlighted as growth drivers, including reports that Google is exploring orbital AI data centers alongside SpaceX, reinforcing the bull case around its long-term AI monetization. Why Alphabet stock is outperforming broader market today?
• Neutral Sentiment: Alphabet continued to generate commentary around product and platform innovation ahead of Google I/O 2026, with investors watching for new AI features and upgrades that could support future engagement and ad monetization. Google I/O 2026: What Google's AI Past Tells Us About Its Future
• Neutral Sentiment: Alphabet and Apple reportedly aligned against parts of the EU’s AI rules, a reminder that regulatory developments could affect how the company integrates and distributes AI services, though the immediate financial impact is unclear. Apple Sides With Google In Fighting EU's AI Measures
• Negative Sentiment: One Reuters report noted criticism that Google and Meta funded children’s media groups while facing scrutiny over social media risks, which could keep trust and regulatory concerns in focus for Alphabet’s consumer platforms. Meta and Google fund US kids' groups, as critics warn of social media risk
• Negative Sentiment: There is also outside competition pressure in AI, including headlines about smaller models outperforming much larger systems, which underscores the need for Alphabet to keep spending heavily to defend its AI leadership. Fastino Labs, Creator of GLiNER, Releases Two State-of-the-Art Language Models 1,000x Smaller Than Frontier

Alphabet Company Profile

Alphabet Inc is the holding company created in 2015 to organize Google and a portfolio of businesses developing technologies beyond Google's core internet services. Its principal operations are led by Google, which builds and operates consumer-facing products such as Google Search, YouTube, Android, Chrome, Gmail, Google Maps and Google Workspace, as well as advertising platforms (Google Ads and AdSense) that historically generate the majority of its revenue. Google also develops consumer hardware (Pixel phones, Nest smart-home devices, Chromecast) and developer and distribution platforms such as Google Play.

Beyond Google's consumer and advertising businesses, Alphabet invests in enterprise and infrastructure offerings through Google Cloud, which provides cloud computing, data analytics and productivity services to businesses and institutions.

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