| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 31 | 16.3x | 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 | 62 | 34.9% | -0.9% | Around median | |
Sentiment | 41 | 42 | 3 | Around median |
The floor: what the company is worth if growth stopped today
68% 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 operates the Google ecosystem, which generates most of its revenue from advertising related to Search, YouTube, and advertising networks, alongside YouTube and Google One subscriptions and devices. Google Cloud also sells infrastructure, data, cybersecurity, and artificial intelligence solutions, including Gemini Enterprise and TPU systems, while Other Bets includes Waymo, Wing, and long-term projects. In Q2 FY2026 ended 2026-06-30, Google Services revenue was approximately $94.5 billion, 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 ended 2026-06-30, up 24.2% year over year from $96.4 billion, net income of $112.2 billion, and diluted earnings per share of 9.11. Gross margin was 61.6% versus 59.5% a year earlier, operating margin increased to 34.0% from 32.4%, and operating cash flow reached $39.1 billion. Net income was significantly affected by unrealized gains in the securities portfolio, so operating income and cash flow provide a more direct view of the core business's performance.
Within the operating mix, Search and other advertising revenue grew 17% to $63.3 billion, YouTube advertising revenue grew 13% to $11.1 billion, and subscriptions, platforms, and devices revenue grew 15% to $12.9 billion, while network advertising revenue declined 1% to $7.3 billion. Google Cloud was the fastest-growing driver, with revenue rising 82%, operating income reaching $8.8 billion, and operating margin reaching 35.6%, with a backlog of $514 billion. The balance sheet combined $242.5 billion in cash and investments with $98.2 billion in total debt in Q2 FY2026 ended 2026-06-30.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-10-28
Year-over-year revenue growth versus 24.2%
Operating margin versus 34.0%
Google Cloud revenue growth versus 82%
The analyst target value is $425 at the median within a range of $350 to $485 across 33 analysts, a method that prices in expected growth and results and is inherently inclined toward optimism. The industry-multiple value is $176 within a range of $118 to $365, based on next year's earnings and a median multiple of 10.8 for 34 companies, treating Alphabet like its peers. The no-growth value is $105 at a discount rate of 10.7% and represents what remains if current after-tax operating income stays constant forever; a 10-year Treasury yield of 5.18% as of 2026-09-24 was used, while the cash flow model generally tends to be conservative and no separate calculated value for the company was included. The methods diverge clearly because analyst targets price in continued growth to a greater degree, while the industry multiple reduces that expectation and the no-growth method excludes any expansion; the average analyst consensus increased to $431.57, with eight target increases and three target reductions during 90 days, while the valuation pillar of the EL7 score ranked 77 out of 92 within the industry.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
Revenue reached $119.8 billion in Q2 FY2026 ended 2026-06-30, up 24.2% year over year from $96.4 billion. Search and other advertising revenue grew 17% to $63.3 billion, and YouTube advertising revenue grew 13% to $11.1 billion. Google Cloud was the fastest-growing business, rising 82% to $24.8 billion, with revenue from sales of TPU systems for customer data centers beginning to be recognized.
Alphabet recorded net income of $112.2 billion and diluted earnings per share of 9.11 in Q2 FY2026 ended 2026-06-30. Management explained that the substantial increase in net income was primarily affected by unrealized gains in the securities portfolio. Operating cash flow for the period was $39.1 billion, while operating income was $40.8 billion, and both are more closely connected to ongoing operations.
Automated analysis for informational purposes only — not investment advice.
Upper limit of capital expenditure at $205 billion
Management raised the FY2026 capital expenditure range to between $195 billion and $205 billion, from a previous estimate of between $180 billion and $190 billion. Capital expenditure reached $44.9 billion in Q2 FY2026 ended 2026-06-30, most of which went to technical infrastructure, with approximately 60% allocated to servers and 40% to data centers and networking equipment. The increase is intended to meet artificial intelligence and Cloud demand, but it contributed to negative free cash flow of $5.9 billion during the quarter.
The Irish regulator imposed a €403 million fine on Google on 2026-09-21 for violations related to the privacy of location data. On 2026-09-18, the U.S. judiciary rejected the forced sale of AdX or the publisher ad server, but required Google to connect AdX with Prebid and share auction data for six years. The ruling kept the advertising technology unit within the company but imposed operating restrictions and oversight that could change how auctions operate and Google's relationship with publishers and competitors.
During 90 days through 2026-09-27, four sales executed by two insiders were recorded, with a total value of $243980. The entire amount, or $243980, was under prearranged 10b5-1 trading plans, and no sales outside those plans were recorded. No open-market purchases were recorded, and the largest seller was an executive officer, with sales valued at $149607.