The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 44 | 16.1x | 20.8x | Around median | |
Growth | 57 | 20.1% | 6.1% | Around median | |
Quality | 79 | 22.4% | 6.6% | Top tier | |
Safety | 88 | 0.2x | 0.7x | Top tier | |
Capital Return | 28 | — | 2.02% | Bottom tier | |
Momentum | 59 | 80.2% | 4.1% | Around median | |
Sentiment | 86 | 34 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, 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 a global technology conglomerate best known for its dominant search engine, Google, alongside a vast ecosystem of digital products including YouTube, Google Cloud, and the Android operating system. The company generates the vast majority of its revenue through digital advertising across its Search platform and YouTube, while rapidly expanding its enterprise cloud computing services and subscription offerings. Alphabet invests heavily in artificial intelligence across all levels of its technology stack, from custom chips like Tensor Processing Units to advanced models like Gemini, integrating capabilities into consumer and enterprise applications.
In the first quarter of 2026, Alphabet delivered exceptional financial results, with total consolidated revenues reaching $109.9 billion, representing a 22 percent increase year-over-year. The company's net income surged by 81 percent to $62.6 billion, translating to earnings per share of $5.11. Operating margins also expanded to 36.1 percent, driven by strong revenue growth and notable operational efficiencies.
Segment performance demonstrated broad-based strength, as Google Search and other advertising revenues grew by 19 percent to $60.4 billion, and YouTube advertising revenues increased by 11 percent to $9.9 billion. The standout performer was Google Cloud, which saw revenue accelerate by 63 percent to surpass $20 billion for the first time, bolstered by nearly 800 percent growth in generative AI solutions. Additionally, the Subscriptions and Devices segment grew by 19 percent to $12.4 billion, pushing total paid subscriptions to 350 million users globally.
Alphabet's stock is currently trading below the analyst consensus average price target of $413.19, reflecting a strong buy consensus among market experts. While the stock has seen a wide 52-week range between $184.73 and $404.47, the robust earnings per share growth to $5.11 in the recent quarter supports an attractive valuation narrative. The highest analyst target of $450 indicates significant upside potential, driven by the company's accelerating Cloud revenues and expanding operating margins.
Figures in the text are as of 2026-07-17; the live price is shown at the top of the page.
The Google Cloud segment delivered exceptional results in the first quarter of 2026, with revenue surging 63 percent to surpass $20 billion for the first time. This growth was primarily driven by enterprise AI solutions, which saw a staggering 800 percent increase year-over-year. Furthermore, the Cloud segment's operating margin expanded significantly to 32.9 percent, and its backlog nearly doubled to reach $462 billion, highlighting massive future revenue potential.
Alphabet significantly raised its full-year 2026 capital expenditure guidance to a range between $180 billion and $190 billion. This upward revision includes investments related to the recent acquisition of Intersect and the unprecedented demand for AI computing resources. Management has also explicitly stated that they expect capital expenditures to increase significantly again in 2027 to support the ongoing buildout of AI infrastructure, including servers and networking equipment.
The Universal Commerce Protocol is a new open standard co-developed by Google and industry leaders like Shopify, Meta, and Amazon to support autonomous e-commerce. This protocol allows shoppers to seamlessly review recommendations, compare options, and complete purchases directly within Google's AI mode and the Gemini app. Major retailers such as Ulta Beauty have already launched autonomous workflows using this protocol, which aims to transform the entire shopping journey from discovery to post-purchase support.
Automated analysis for informational purposes only — not investment advice.
Alphabet completed the acquisition of cloud security platform Wiz in March 2026 to bolster its autonomous defense offerings. While Wiz's performance has exceeded early expectations and is driving strong enterprise demand, it will have a near-term financial impact. Management expects the acquisition to create a low single-digit percentage headwind on Google Cloud's operating margins for the remainder of 2026.
Yes, Alphabet faces significant regulatory challenges, particularly in the European Union. Recent rulings require Google to open its Android operating system and search data to competing AI developers, which could impact its ecosystem dominance. Additionally, following a legal settlement with Epic Games, Google has been forced to open its Play Store to rival app stores, potentially affecting its app distribution revenues.