Zacks Research Has Positive Outlook of Alphabet Q3 Earnings

Key Points

• Analysts at Zacks Research have revised their Q3 2025 earnings per share estimate for Alphabet to $2.31, up from $2.13, highlighting a positive outlook for the company's financial performance.
• Alphabet's recent quarterly earnings surpassed expectations, reporting $2.31 per share, exceeding analysts' estimates of $2.15, with notable revenue of $96.43 billion compared to an estimated $93.60 billion.
• The company is set to pay a quarterly dividend of $0.21 on September 15th, reflecting an annualized dividend yield of 0.4% and a low payout ratio of 8.95%.

Alphabet Inc. (NASDAQ:GOOGL - Free Report) - Investment analysts at Zacks Research increased their Q3 2025 earnings per share estimates for Alphabet in a research report issued to clients and investors on Wednesday, August 13th. Zacks Research analyst R. Department now forecasts that the information services provider will earn $2.31 per share for the quarter, up from their prior forecast of $2.13. The consensus estimate for Alphabet's current full-year earnings is $8.90 per share. Zacks Research also issued estimates for Alphabet's Q4 2025 earnings at $2.40 EPS, FY2025 earnings at $9.83 EPS, Q1 2026 earnings at $2.40 EPS, Q2 2026 earnings at $2.53 EPS, Q3 2026 earnings at $2.59 EPS, Q4 2026 earnings at $2.72 EPS, FY2026 earnings at $10.24 EPS and Q2 2027 earnings at $2.70 EPS.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The information services provider reported $2.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.15 by $0.16. Alphabet had a return on equity of 34.31% and a net margin of 31.12%. The firm had revenue of $96,428,000 billion during the quarter, compared to analyst estimates of $93.60 billion.

A number of other research analysts also recently issued reports on GOOGL. KeyCorp lifted their price target on Alphabet from $215.00 to $230.00 and gave the company an "overweight" rating in a report on Thursday, July 24th. Needham & Company LLC lifted their price target on Alphabet from $210.00 to $220.00 and gave the company a "buy" rating in a report on Thursday, July 24th. Piper Sandler upped their target price on Alphabet from $195.00 to $220.00 and gave the company an "overweight" rating in a research report on Thursday, July 24th. Sanford C. Bernstein raised their price target on Alphabet from $185.00 to $195.00 and gave the stock a "market perform" rating in a report on Tuesday, July 22nd. Finally, Citizens Jmp raised Alphabet from a "market perform" rating to an "outperform" rating and set a $220.00 price target for the company in a report on Friday, June 27th. Ten investment analysts have rated the stock with a hold rating, twenty-nine have issued a buy rating and four have issued a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $211.53.

Alphabet Trading Down 0.7%

GOOGL opened at $201.96 on Thursday. The stock's fifty day moving average is $182.95 and its two-hundred day moving average is $173.22. The company has a market capitalization of $2.44 trillion, a P/E ratio of 21.51, a PEG ratio of 1.37 and a beta of 1.01. Alphabet has a 52 week low of $140.53 and a 52 week high of $207.05. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.07.

Alphabet Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Monday, September 8th will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Monday, September 8th. Alphabet's dividend payout ratio (DPR) is presently 8.95%.

Insider Buying and Selling

In other Alphabet news, Director John L. Hennessy sold 1,000 shares of the firm's stock in a transaction on Friday, August 8th. The stock was sold at an average price of $200.00, for a total value of $200,000.00. Following the sale, the director directly owned 6,916 shares in the company, valued at $1,383,200. This trade represents a 12.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Sundar Pichai sold 32,500 shares of the firm's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $196.23, for a total value of $6,377,475.00. Following the completion of the sale, the chief executive officer owned 2,494,892 shares in the company, valued at approximately $489,572,657.16. This represents a 1.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 274,219 shares of company stock valued at $49,674,273 in the last three months. 11.64% of the stock is currently owned by insiders.

Institutional Trading of Alphabet

Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank purchased a new position in shares of Alphabet in the 2nd quarter valued at approximately $21,944,208,000. Nuveen LLC acquired a new stake in shares of Alphabet during the first quarter worth $4,317,606,000. GAMMA Investing LLC lifted its holdings in shares of Alphabet by 16,993.2% during the first quarter. GAMMA Investing LLC now owns 16,062,457 shares of the information services provider's stock worth $2,483,898,000 after purchasing an additional 15,968,487 shares during the period. Laurel Wealth Advisors LLC lifted its holdings in shares of Alphabet by 17,667.7% during the second quarter. Laurel Wealth Advisors LLC now owns 15,245,075 shares of the information services provider's stock worth $2,686,640,000 after purchasing an additional 15,159,273 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of Alphabet by 2.9% during the first quarter. Vanguard Group Inc. now owns 509,826,331 shares of the information services provider's stock worth $78,839,544,000 after purchasing an additional 14,307,345 shares during the period. Institutional investors and hedge funds own 40.03% of the company's stock.

Alphabet Company Profile

Alphabet Inc offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

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