Alphabet (GOOGL) Stock Forecast & Price Target

Alphabet has demonstrated substantial growth, with a quarterly revenue increase of 16% year-over-year, reaching $102.3 billion, driven by an impressive 15% rise in search revenues and a notable 34% jump in Google Cloud revenues. The company reported operating income of $34.7 billion, marking a 22% year-over-year increase, and achieved operating margins of 23.7% in its cloud division, reflecting robust demand for AI and core products. Additionally, with a 46% increase in backlog and strong earnings per share growth of 35% year-over-year, Alphabet is well-positioned to enhance its financial performance in the coming years.

The financials for Alphabet indicate significant headwinds, as the company's operating margin has shown a continuous decline from 33.9% in the first quarter of 2025 to 30.5% in the third quarter of the same fiscal year, reflecting increasing pressure on profitability. Additionally, revenues from third-party networks for the Open Internet segment fell by 3% year-over-year, marking a consistent decline throughout 2024 and 2025, which raises concerns about overall demand in the advertising space. Competitive challenges, macroeconomic pressures, and regulatory risks further exacerbate the unfavorable outlook, particularly as Google faces potential market share losses in core areas such as search and cloud services.