| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 16.1x | 17.5x | Bottom tier | |
Growth | 79 | 20.1% | 7.1% | Top tier | |
Quality | 80 | 15.9% | 4.5% | Top tier | |
Safety | 90 | — | 2.6x | Top tier | |
Capital Return | 58 | 0.26% | 0.06% | Around median | |
Momentum | 61 | 33.3% | -0.9% | Around median | |
Sentiment | 75 | 34 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
67% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.13% as of 2026-10-21. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Alphabet is the parent company of the Google ecosystem and generates most of its revenue from advertising related to Search, YouTube, and the publisher network, alongside YouTube and Google One subscriptions and devices. Google Cloud adds a growing source of revenue from cloud infrastructure, artificial intelligence products, cybersecurity, data analytics, and Workspace, while Other Bets includes ventures such as Waymo and Wing. In Q2 FY2026 ended 2026-06-30, Google Services revenue was approximately $94.5 billion, including $63.3 billion from Search advertising, $11.1 billion from YouTube advertising, $7.3 billion from network advertising, and $12.9 billion from subscriptions, platforms, and devices, while Google Cloud revenue was approximately $24.8 billion and Other Bets revenue was approximately $382 million.
Alphabet recorded revenue of $119.8 billion in Q2 FY2026, representing year-over-year growth of 24.2% from $96.4 billion in Q2 FY2025. Gross margin was 61.6% versus 59.5%, and operating margin was 34.0% versus 32.4%, while net income reached $112.2 billion and diluted earnings per share reached 9.11; management explained that unrealized gains in the securities portfolio significantly increased net income. Within the operating mix, Search and other advertising revenue grew 17% and YouTube advertising grew 13%, while Google Cloud grew 82% and its operating margin expanded to 35.6%.
Operating cash flow was $39.1 billion in Q2 FY2026, but capital expenditures primarily related to artificial intelligence infrastructure weighed on free cash flow. During the last 12 months through 2026-06-30, the company generated revenue of $445.9 billion, operating cash flow of $185.7 billion, and free cash flow of $53.3 billion. It ended the quarter with cash and investments of $242.5 billion versus total debt of $98.2 billion, with share repurchases of $17.0 billion and stock-based compensation of $30.8 billion during the last 12 months.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-10-27
Year-over-year revenue growth compared with the 24.2% threshold
Operating margin compared with the 34.0% threshold
Google Cloud revenue growth compared with the 82% threshold
The median analyst target is $425 within a range of $350 to $515 among 16 analysts. It measures expected growth and earnings, and analyst targets are inherently inclined toward optimism; the broader consensus places the average target at $431.94. The industry-multiple value is $176 within a range of $119 to $356, based on next year's earnings and a median multiple of 10.8 for 35 companies, and it prices Alphabet as peer companies are priced. The no-growth value is $105 at a discount rate of 10.6%, measuring what remains if current after-tax operating profit stays constant forever; this is an inherently conservative cash-based assessment. Analyst targets converge around $425–431.94 but diverge clearly from the industry-multiple value and the no-growth value because the first prices in continued growth, the second measures peer valuation, and the third excludes future growth; this divergence is reinforced by the weak EL7 valuation pillar at 21 out of 100 and ranked 75 out of 92 within the industry.
Figures in the text are as of 2026-09-28; the live price is shown at the top of the page.
In Q2 FY2026 ended 2026-06-30, year-over-year revenue grew 24.2% to $119.8 billion. Search and other advertising revenue grew 17% to $63.3 billion, and YouTube advertising grew 13% to $11.1 billion. Google Cloud was the fastest-growing segment, with revenue rising 82% to $24.8 billion, supported by artificial intelligence infrastructure, Gemini solutions, and TPU systems sales.
Google Cloud revenue reached approximately $24.8 billion in Q2 FY2026, representing year-over-year growth of 82%, while its operating income rose to $8.8 billion and its margin increased to 35.6%. Remaining performance obligations reached $514 billion, with slightly more than half expected to be recognized as revenue over 24 months. Nearly 90% of Fortune 100 companies use Gemini Enterprise, while the Gemini app reached approximately 950 million monthly active users.
Automated analysis for informational purposes only — not investment advice.
Operating cash flow compared with the $39.1 billion threshold
Google Cloud generated revenue of $24.8 billion in Q2 FY2026 compared with Alphabet's total revenue of $119.8 billion. The segment grew 82% and recorded an operating margin of 35.6%, making it a rapidly growing source of profit alongside Google Services. Its remaining performance obligations also reached $514 billion, and management says the majority of the balance is associated with GCP contracts across a broad mix of customers.
On 2026-09-03, the U.S. court rejected the request to force Google to sell AdX or open the core technology of the DoubleClick for Publishers platform. The decision kept the advertising technology ecosystem integrated, including AdX, which charges publishers a 20% fee according to the case details. However, it simultaneously confirmed the existence of an unlawful monopoly and imposed behavioral remedies, so the risk of a structural breakup declined without eliminating regulatory and operational risk.
In Q2 FY2026, Alphabet held cash and investments of $242.5 billion versus total debt of $98.2 billion. During the last 12 months through 2026-06-30, operating cash flow was $185.7 billion and free cash flow was $53.3 billion. However, operating cash flow equaled only 76% of net income of $244.2 billion, while intensive infrastructure investment also increased pressure on free cash flow.