Analysts maintain a strong buy rating on GOOG, citing AI monetization and cloud growth despite a 47% YoY free cash flow decline.
Alphabet’s stock carries a $442 price target, reflecting 21% upside, with 89% of analysts rating it a buy. The company’s AI and cloud segments drive optimism, including a $460 billion Google Cloud backlog and 16 billion tokens-per-minute usage for Gemini.
Shares trade at $363.62 after a 105% one-year rally, yet the trailing P/E remains at 28, below its profit margins of 37.9%. Q1 FY2026 earnings beat expectations, with EPS of $5.11 versus a $2.63 consensus, and revenue growing 21.8% YoY to $109.90 billion.
The company guided $175 billion in 2026 CapEx, though free cash flow fell 47% YoY. Analysts see limited downside, with a bear-case target of $356.