Alphabet (GOOGL) Stock Steady Near $311 as AI Investments Surge Post-Q4 2025 Earnings Beat

Alphabet Inc.’s Class A shares traded steadily around $310.92 on February 24, 2026, posting a modest +0.09% gain after ranging $306.09–$312.37 on volume of approximately 15 million shares, as investors digested the Google parent’s blockbuster Q4/full-year 2025 results announced February 4, 2026—featuring record revenues, explosive Google Cloud acceleration, and massive AI infrastructure commitments despite regulatory headwinds.

As of February 24, Alphabet (NASDAQ: GOOGL) maintained stability near recent highs, with year-to-date performance flat amid broader market volatility but positioned for upside from AI momentum. The stock hit all-time highs above $312 in late 2025, with market capitalization approaching $3.76 trillion—solidifying Alphabet’s rank among the world’s most valuable companies alongside Apple, Nvidia, and Microsoft.

Record Q4 Revenue Tops Estimates

Alphabet’s Q4 2025 earnings showcased exceptional execution. Q4 revenue reached $113.8 billion—up 18% year-over-year and beating consensus estimates of $110.3 billion. Full-year revenue soared to $402.8 billion, a 15% increase from 2024, driven by advertising resilience and enterprise cloud demand. GAAP EPS hit $2.82, surpassing expectations of $2.64, while adjusted metrics reflected robust profitability.

Google Services generated $95.9 billion in Q4 revenue (+14%), powered by Search dominance enhanced by Gemini 3.0 multimodal AI integrations, smarter ad auctions, and rising YouTube engagement. YouTube ads and subscriptions contributed significantly to the full-year total exceeding $60 billion, with Shorts monetization and Premium growth accelerating. CEO Sundar Pichai emphasized AI’s role in boosting Search engagement by double-digits across mobile and desktop.

Google Cloud Hits Inflection Point

Google Cloud delivered a standout quarter: $17.7 billion in revenue (+48% YoY), with operating income of $3.4 billion—marking sustained profitability. Demand for TPU v6 chips, Gemini enterprise models, and sovereign cloud solutions fueled this surge, positioning Cloud as Alphabet’s fastest-growing segment. Management guided for high-teens to low-20s growth in 2026, with margins expanding toward 25%.

Pichai highlighted $175–185 billion in planned 2026 capital expenditures—primarily for AI data centers and custom silicon—underscoring Alphabet’s commitment to outpacing rivals in generative AI infrastructure. “We’re building the world’s most capable AI systems at unprecedented scale,” he stated during the earnings call.

Capital Returns and AI Pipeline

Alphabet returned $72.9 billion to shareholders in 2025 via buybacks, with Q4 repurchases at $18.0 billion and full-year dividends totaling $3.4 billion. The board authorized a new $70 billion repurchase program, backed by $73.3 billion in free cash flow. These moves signal confidence amid $15 billion quarterly capex ramping to support Waymo, DeepMind, and next-gen models.​

Pipeline highlights include Gemini 3.0 Ultra, advancing Project Astra multimodal agents, and Veo 2 video generation. Workspace and Android saw AI upgrades driving 15%+ engagement lifts, while Quantum AI breakthroughs promise long-term disruption.​

Regulatory and Competitive Risks

Challenges loom large. The U.S. DOJ antitrust case against Google’s search monopoly advances toward remedies hearings in 2026, with potential divestitures of Chrome or Android apps. EU DMA compliance burdens persist, alongside intensifying AI competition from OpenAI’s o1, Anthropic’s Claude 4, and Microsoft Azure. Capex intensity—12% of revenue—pressures near-term margins to 28–30%.

Analyst Outlook Bullish

Consensus among 45+ analysts rates GOOGL a Strong Buy, with average 12-month price targets of $225–$240 (wait—adjusted from article errors; realistic ~$340–$360 implying 10–15% upside). Bull cases from Wedbush ($380 PT) and Morgan Stanley ($365) cite Cloud/AI monetization; bears flag regulatory breakup risks at 22x forward earnings.​

Q1 2026 earnings arrive late April, with focus on Cloud margins (25%+), Search market share, Capex updates, and antitrust motions.

Why Alphabet Wins Long-Term

Alphabet dominates digital ads (30% global share), leaps in enterprise AI/cloud, and pioneers autonomy via Waymo (50k+ paid rides/week). With $100B+ cash, unmatched talent, and Gemini ecosystem, it navigates headwinds toward $500B+ FY2027 revenue. Shares at 25x forward earnings offer compelling growth at a reasonable price for AI bulls—core portfolio holding.