Technology giant Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) will likely highlight efforts being made in AI to help with future growth when the company reports fourth-quarter financial results on Wednesday after market close.
Here are the earnings estimates, what analysts are saying and the key items to watch.
Alphabet Q4 Earnings Estimates
Analysts expect Alphabet to report fourth-quarter revenue of $104.75 billion, up from $96.47 billion in last year's fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in nine of the last 10 quarters, including in three straight quarters.
Analysts expect Alphabet to report fourth-quarter earnings per share of $2.62, up from $2.15 in last year's fourth quarter.
The company has beaten analyst estimates for earnings per share in 11 straight quarters.
Alphabet Analyst Ratings and Price Targets
Analysts have been mostly raising their price targets on Alphabet stock ahead of the report.
Freedom Capital Markets Chief Market Strategist Jay Woods said Alphabet’s report is coming with the company’s Gemini AI gaining traction.
“Alphabet has been the most magnificent of all the Mag 7 over the past year,” Woods said in a weekly newsletter.
With shares closing at all-time weekly highs last week, Woods said the bar is high for the stock. Alphabet shares have traded higher after the last three earnings reports, according to Woods.
Goldman Sachs analyst Eric Sheridan maintained a Buy rating and $375 price target on Alphabet ahead of earnings. The analyst highlighted the company’s Genie 3 in a recent investor note.
Sheridan said Alphabet could monetize existing and future games based on Genie 3. While further testing is needed, the analyst said this could increase monetization potential for Alphabet’s AI platforms.
Here are other recent analyst ratings for Alphabet and their price targets:
- Raymond James: Upgraded from Outperform to Strong Buy, raised price target from $315 to $400
- TD Cowen: Maintained Buy rating, raised price target from $350 to $355
- Scotiabank: Maintained Sector Outperform rating, raised price target from $336 to $375
Key Items to Watch in Alphabet's Q4 Results
Alphabet was the top-performing Magnificent Seven stock in 2025 with a gain of 65.2%. This could put high pressure on the tech giant to once again outperform in 2026.
The company's earnings report could put other stocks in the spotlight along with some market indexes and ETFs.
Alphabet is the second largest holding in the Roundhill Magnificent Seven ETF (BATS:MAGS) at 15.34% of assets.
In the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500, Alphabet Class A shares make up 3.32% of assets with Class C shares making up 2.65% of assets. Together, the company makes up 5.97% and would be the third-largest holding.
Similarly, in the Invesco QQQ Trust (NASDAQ:QQQ), Alphabet makes up 3.8% (GOOGL) and 3.55% (GOOG) of assets. Together, the stocks represent 7.35% of assets and would rank as the third-largest holding.
Alphabet's results are likely to center on strength of Search, Advertising and Cloud. The company's main segments all saw double-digit revenue growth in the third quarter. Investors and analysts will be looking for similar results in the fourth quarter.
Management highlighted strong momentum from its AI efforts during the quarter, with AI helping its Search business and other areas.
Investors will likely be looking to see if Alphabet provides more commentary and figures on Gemini and other AI tools during the earnings report and conference call. Gemini ended the third quarter with 650 million monthly active users.
Alphabet could also highlight the rising valuations of some of its investments, including Waymo, which was recently valued at $126 billion in a $16 billion funding round. Waymo was valued at $45 billion back in 2024. Alphabet is also an owner of SpaceX stock from an investment made years ago. SpaceX has surged in value and recently announced a merger with xAI ahead of a potential IPO.
Alphabet Stock Price Action
Alphabet stock was down 1.2% to $340.70 on Tuesday versus a 52-week trading range of $140.53 to $349.00. Alphabet stock is up 7.5% year-to-date in 2026.
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