| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 17.0x | 18.2x | Bottom tier | |
Growth | 79 | 20.1% | 7.1% | Top tier | |
Quality | 80 | 15.9% | 4.5% | Top tier | |
Safety | 89 | — | 2.6x | Top tier | |
Capital Return | 19 | 0.25% | 2.10% | Bottom tier | |
Momentum | 70 | 54.0% | 2.9% | Top tier | |
Sentiment | 42 | 42 | 3 | Around median |
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 Inc. operates through an ecosystem combining digital advertising, consumer services, cloud computing, subscriptions, and long-term bets. Most revenue comes from Google Services, particularly Google Search and YouTube advertising, alongside YouTube Music and Premium, Google One, platforms, and devices; while Google Cloud generates revenue from GCP, infrastructure, artificial intelligence solutions, Gemini Enterprise, and TPU system sales. In the second quarter of fiscal year 2026, Google Services revenue was approximately $94.5 billion, Google Cloud revenue was approximately $24.8 billion, and Other Bets revenue was approximately $382 million.
In the second quarter of fiscal year 2026, Alphabet's revenue increased 24% to $119.8 billion, and gross profit according to EDGAR data was approximately $73.9 billion, equivalent to a gross margin of about 61.7%. Operating income increased 30% to $40.8 billion, and the operating margin reached 34%, while net income according to EDGAR data was approximately $112.2 billion and earnings per share were $9.11. However, reported net income benefited significantly from unrealized gains in the securities portfolio, as other income and expenses totaled $98 billion, with news reports linking $94.1 billion of those gains to the SpaceX investment.
Advertising remained the primary profit driver in the second quarter of fiscal year 2026; Search and other advertising revenue increased 17% to $63.3 billion, and YouTube advertising increased 13% to $11.1 billion, while network advertising decreased 1% to $7.3 billion. In contrast, Google Cloud was the fastest-growing component of the mix, with revenue increasing 82% to $24.8 billion, operating income more than tripling to $8.8 billion, and its margin expanding from 20.7% to 35.6%. Subscriptions, platforms, and devices revenue also increased 15% to $12.9 billion, supported by YouTube Music and Premium, Google One, and artificial intelligence plans.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $428.14, with a “Buy” consensus and a wide range between $350 and $475; the average is approximately 4.8% above the 52-week range high of $408.61, while the highest target exceeds that high by approximately 16%. The broad range of targets indicates a meaningful divergence in estimates of the return on artificial intelligence spending, and no usable price-to-earnings ratio is available in the data, while the inflation of second-quarter fiscal year 2026 earnings by unrealized investment gains makes relying solely on reported earnings misleading when valuing the stock.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Google Cloud was the fastest-growing driver, with revenue increasing 82% to $24.8 billion in the second quarter of fiscal year 2026. Its operating income reached $8.8 billion, with the margin expanding to 35.6% from 20.7%. Contracted backlog also reached $514 billion, and management expects to recognize slightly more than half of it within 24 months.
Yes, advertising remained the largest source of revenue in the second quarter of fiscal year 2026, totaling $81.7 billion across Search, YouTube, and network advertising. Search and other advertising revenue increased 17% to $63.3 billion, and YouTube advertising increased 13% to $11.1 billion. In contrast, network advertising decreased 1% to $7.3 billion, showing that advertising strength was not equal across all channels.
Alphabet generated operating cash flow of $39.1 billion in the second quarter of fiscal year 2026, but capital expenditure totaled $44.9 billion. This resulted in negative free cash flow of $5.9 billion, with most investment directed toward artificial intelligence technical infrastructure. On July 22, 2026, management raised its fiscal year 2026 capital expenditure forecast to $195–205 billion and said free cash flow would remain under pressure.
The Gemini app reached approximately 950 million monthly active users in the second quarter of fiscal year 2026, with daily active users tripling over one year. AI Mode surpassed 1 billion monthly active users, while Gemini Enterprise is used by nearly 90% of Fortune 100 companies. Developers and customers also process approximately 22 billion tokens through model APIs, up from 16 billion in the previous quarter, and more than 9 million developers use Alphabet's models monthly.
Net income according to EDGAR data was approximately $112.2 billion and earnings per share were $9.11 in the second quarter of fiscal year 2026. However, other income and expenses totaled $98 billion, driven primarily by unrealized gains in the securities portfolio, and news reports dated August 20, 2026 linked approximately $94.1 billion of those gains to the SpaceX investment. Therefore, operating income of $40.8 billion and its 30% growth provide a clearer view of operating performance than net income alone.
Google Cloud's operating margin reached 35.6% in the second quarter of fiscal year 2026, compared with 20.7% in the comparable period, but demand still exceeds available internal capacity. Alphabet plans to use third-party capacity in the third quarter of fiscal year 2026 as a temporary solution, and management said its cost would place modest pressure on the margin. Increased depreciation, energy, and data center operating costs will add further pressure as capital expenditure rises to a range of $195–205 billion in fiscal year 2026.
