How to Trade Alphabet After Q4 2025 Earnings Performance
Founded in 2015 after Google’s corporate restructuring, Alphabet Inc. (NASDAQ: GOOGL) serves as the parent company of Google. It offers a wide range of products and services, including Android, YouTube, Google Workspace, Chrome, and cloud computing through Google Cloud, alongside investments in artificial intelligence.
Alphabet recently reported its fourth-quarter and full-year 2025 earnings. Here’s a closer look at the company’s performance and what analysts are forecasting for the stock.
This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions.
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Alphabet’s Q4 2025 Earnings Performance Summary
Key Takeaways
- Alphabet delivered strong top-line growth, with consolidated revenue rising 18% year on year to $113.8 billion, driven by momentum across both Google Services and Google Cloud segments.
- Operating income increased 16% YoY, with operating margin at 31.6%, even after a $2.1 billion employee compensation charge for Waymo, Alphabet’s self-driving car unit.
- Net income rose 30% YoY, while EPS increased 31% to $2.82.
- Alphabet surpassed a major milestone, achieving more than $400 billion in annual revenue for the first time in the company’s history.
- Segment-wise performance:
- Google Services grew 14% YoY, led by strength in Google Search, subscriptions, and YouTube, with YouTube annual revenues exceeding $60 billion.
- Google Cloud was the fastest-growing segment, with revenue up 48% YoY on strong enterprise AI demand.
- Alphabet’s CEO, Sundar Pichai, highlighted strength in AI-driven momentum, adding that Gemini models are now processing over 10 billion tokens per minute and the Gemini app has surpassed 750 million monthly active users. To support growing demand, management expects 2026 capital expenditures of $175 to $185 billion. For reference, this represents a roughly twofold increase compared to last year’s CapEx.
Source: Alphabet’s Quarterly Results
Alphabet’s 12-Month Analyst Stock Price Forecast
According to 32 Wall Street analysts, polled by TipRanks, offering a 12-month stock price forecast for Alphabet over the past 3 months:
- Buy Ratings: 25
- Hold Ratings: 7
- Sell Ratings: 0
- Average Price Target: $376.63
- High Price Target: $415.00
- Low Price Target: $305.00
Trading Strategy Example: Alphabet Inc.
The following trading examples are for educational purposes only and do not constitute investment advice. Investors should conduct independent research before making trading decisions. An example trading idea for the Alphabet share price could be as follows:
Remember, markets are volatile, and Alphabet’s share price can fluctuate and may even trend lower. Despite strong earnings, the company’s shares briefly traded around 6% lower following the results as investors digested its aggressive 2026 capital expenditure plans.
More broadly, Alphabet’s performance remains closely tied to digital advertising demand, cloud adoption, and enterprise IT spending. A slowdown in global advertising budgets or intensifying competition in cloud services could weigh on growth expectations.
How to Buy Alphabet Stock in 4 Steps
- Open an account with Admiral Markets and complete the onboarding process to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Do You See the Alphabet Stock Price Moving Differently?
If you believe there is a higher chance that the share price of Alphabet will move lower, then you can also trade short using CFDs (Contracts for Difference). However, these have higher associated risks and are not suitable for all investors. Learn more about CFDs in this How to Trade CFDs article.
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