KeyCorp Weighs in on Alphabet's Q3 Earnings (NASDAQ:GOOG)

Key Points

• Alphabet significantly beat Q2 expectations: The company reported $9.11 in EPS versus the $2.87 consensus estimate and revenue of $119.8 billion, up 24.2% year over year.
• KeyCorp lowered its near-term outlook: The firm reduced its Q3 2026 EPS estimate to $2.99 from $3.02, while projecting $20.48 in FY2026 EPS and $15.24 in FY2027 EPS.
• Wall Street remains broadly positive: Alphabet carries a consensus “Buy” rating and an average price target of $410.09, despite mixed analyst revisions and recent insider selling.

Alphabet Inc. (NASDAQ:GOOG - Free Report) - KeyCorp cut their Q3 2026 EPS estimates for Alphabet in a research report issued on Thursday, July 23rd. KeyCorp analyst J. Patterson now anticipates that the information services provider will post earnings of $2.99 per share for the quarter, down from their prior estimate of $3.02. The consensus estimate for Alphabet's current full-year earnings is $19.79 per share. KeyCorp also issued estimates for Alphabet's Q4 2026 earnings at $3.27 EPS, FY2026 earnings at $20.48 EPS and FY2027 earnings at $15.24 EPS.

Alphabet (NASDAQ:GOOG - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, topping the consensus estimate of $2.87 by $6.24. The company had revenue of $119.80 billion for 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% compared to the same quarter last year. During the same period last year, the business posted $2.31 earnings per share.

GOOG has been the topic of several other reports. Barclays reiterated an "overweight" rating and set a $425.00 target price (up from $405.00) on shares of Alphabet in a report on Thursday, July 23rd. DZ Bank upgraded Alphabet to a "strong-buy" rating in a report on Thursday, July 23rd. Piper Sandler reissued an "overweight" rating and set a $395.00 target price (down from $445.00) on shares of Alphabet in a research note on Thursday, July 23rd. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $420.00 target price (down from $435.00) on shares of Alphabet in a research note on Thursday, July 23rd. Finally, Rosenblatt Securities set a $393.00 price target on Alphabet in a research note on Thursday, July 23rd. Seven research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Alphabet currently has an average rating of "Buy" and an average target price of $410.09.

Alphabet Price Performance

Shares of GOOG stock opened at $332.60 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. Alphabet has a 12-month low of $188.70 and a 12-month high of $404.47. The firm has a fifty day moving average of $358.25 and a 200-day moving average of $337.68. The firm has a market capitalization of $4.03 trillion, a price-to-earnings ratio of 16.71, a price-to-earnings-growth ratio of 0.95 and a beta of 1.23.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Gerber Kawasaki Wealth & Investment Management raised its holdings in Alphabet by 1.0% in the 4th quarter. Gerber Kawasaki Wealth & Investment Management now owns 275,943 shares of the information services provider's stock valued at $86,596,000 after buying an additional 2,850 shares during the last quarter. Newbridge Financial Services Group Inc. raised its stake in shares of Alphabet by 7.5% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 60,739 shares of the information services provider's stock valued at $19,060,000 after acquiring an additional 4,239 shares during the last quarter. Violich Capital Management Inc. lifted its holdings in shares of Alphabet by 1.0% during the fourth quarter. Violich Capital Management Inc. now owns 340,776 shares of the information services provider's stock worth $106,936,000 after purchasing an additional 3,378 shares during the period. Wealthcare Advisory Partners LLC grew its stake in shares of Alphabet by 12.1% in the fourth quarter. Wealthcare Advisory Partners LLC now owns 45,014 shares of the information services provider's stock worth $14,125,000 after purchasing an additional 4,848 shares during the last quarter. Finally, Robinhood Asset Management LLC bought a new stake in shares of Alphabet in the fourth quarter worth $20,337,000. Institutional investors own 27.26% of the company's stock.

Insider Buying and Selling at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of Alphabet stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $23.75, for a total value of $2,077,531.25. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John L. Hennessy sold 1,050 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $368.63, for a total transaction of $387,061.50. Following the completion of the sale, the director directly owned 1,481 shares of the company's stock, valued at $545,941.03. This represents a 41.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 285,049 shares of company stock valued at $10,051,351 in the last three months. 12.99% of the stock is owned by insiders.

Alphabet Dividend Announcement

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

Key Stories Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Fundamentals remain strong. Alphabet reported 24.2% year-over-year revenue growth to $119.8 billion, while Google Cloud revenue surged 82% and its backlog reached approximately $514 billion. Search and YouTube also continued to grow, supporting the long-term AI monetization story. Alphabet earnings and stock analysis
• Positive Sentiment: Wall Street remains broadly constructive. Alphabet maintains a consensus “Buy” rating, with several firms retaining targets well above the current trading level. Phillip Securities upgraded the stock to “strong buy,” while Erste Group raised its FY2027 EPS estimate to $14.74. Asset Management One also added roughly 117,000 GOOGL shares in its latest disclosed portfolio update.
• Positive Sentiment: YouTube gained additional distribution potential. A multiyear agreement will bring Peacock programming, including sports and entertainment content, to YouTube Premium subscribers in the United States, potentially improving engagement and subscription value. YouTube Peacock agreement
• Neutral Sentiment: Analyst estimates are mixed. KeyCorp raised its FY2026 EPS forecast sharply to $20.48 from $14.41 and lifted its FY2028 estimate modestly, but reduced estimates for third-quarter 2026, fourth-quarter 2026 and FY2027 earnings. This signals confidence in the broader outlook but some caution about near-term results.
• Neutral Sentiment: Insider and institutional activity is conflicting. Major shareholder 2019 GP L.L.C. GV reported several sales, while Provident Trust reduced its GOOG and GOOGL positions by about 21%. These moves may weigh on sentiment, although other institutions continue to add shares.
• Negative Sentiment: AI capital spending is the main pressure point. Alphabet raised its 2026 capital-expenditure outlook to approximately $195 billion–$205 billion. Quarterly capital spending reached $44.9 billion and free cash flow turned negative, prompting investors to question whether AI infrastructure returns will justify the investment.
• Negative Sentiment: European litigation risk is increasing. Following a $1 billion Digital Markets Act fine, rivals could pursue as much as $10 billion in private damages claims related to Google’s business practices. Google European damages litigation

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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