US · Nasdaq · GOOGL
Alphabet (GOOGL) stock analysis: valuation and financials
Technology · Computer Software: Programming, Data Processing
$354.68 +0.9% Price as of Oct 12, 2026
Elite franchise — $402.8B FY2025 revenue (+15.1%), 31.9% ROIC, $142.3B net cash — but 29.7% capex intensity cut TTM FCF margin to 12.0% and the base case implies -40.5% downside.
- Market cap
- $4.3T
- P/E
- 17.8x
- EV/Sales
- 9.4x
- FCF yield
- 1.2%
- Dividend yield
- 0.2%
- 52-week range
- $236.57 – $402.62
- Next earnings
- Oct 28, 2026
Research as of Oct 12, 2026
Business quality scorecard
- Growth69
- Profitability90
- Cash flow70
- Balance sheet100
- Capital allocation71
- Innovation86
- Valuation43
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Advertisers (73.2% of FY2025 revenue) buy Search, YouTube and Network ads while enterprises and consumers buy cloud, subscriptions and devices; Google Services is the profit engine, at 95.6% of segment operating profit ($139.4B, 40.7% margin).
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $257.6B | $282.8B | $307.4B | $350.0B | $402.8B |
| Revenue growth | +41.2% | +9.8% | +8.7% | +13.9% | +15.1% |
| Gross margin | 56.9% | 55.4% | 56.6% | 58.2% | 59.7% |
| Operating margin | 30.6% | 26.5% | 27.4% | 32.1% | 32.0% |
| Net income | $76.0B | $60.0B | $73.8B | $100.1B | $132.2B |
| Free cash flow | $67.0B | $60.0B | $69.5B | $72.8B | $73.3B |
| FCF margin | 26.0% | 21.2% | 22.6% | 20.8% | 18.2% |
Amounts in USD · What is free cash flow?
Margins Gross margin rose to 59.7% FY2025 from 58.2% FY2024 and 61.7% in Q2 FY2026 (60.9% TTM); operating margin flat at 32.0% vs 32.1% (33.1% TTM). Lower TAC rate and Search mix lifted gross profit; depreciation, SBC, legal charges offset.
- Cash flow WatchFY2025 operating cash flow was $164.7B versus net income of $132.2B. TTM OCF of $185.7B compares with $244.2B net income, which is inflated by large unrealized equity gains rather than cash generation.
- Debt LowNet cash of $142.3B and net debt/EBITDA of -0.82x; total debt of $100.2B TTM versus $14.2B at FY2024 and $48.5B at FY2025. Debt/equity is 0.16x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $242.5B
- Total debt
- $100.2B
- Net cash
- $142.3B
- Interest coverage
- 65.6x
- Current ratio
- 2.7x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongScale execution: FY2025 revenue $402.8B (+15.1% y/y), net margin 32.8%, ROIC 31.9%, interest coverage 65.6x, and net cash of $142.3B.
- Credibility HighRevenue growth accelerated every quarter from 15.95% in Q3 FY2025 to 24.23% in Q2 FY2026; FY2025 revenue $402.8B, up 15.1% on FY2024's $350.0B, matching the AI-driven growth narrative.
Valuation range
Implied value per share · Price when researched: $354.68
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.