Alphabet Price Targets Raised to $395 and $370 after 18% Q4 Growth
Two research firms raised Alphabet’s price targets to $395 and $370 following an 18% year-over-year Q4 revenue increase that surpassed estimates. Cloud backlog jumped 55% quarter-over-quarter and Gemini reached over 750 million monthly users, while higher capital expenditures aim to support growth in core services.
1. Analyst Price Target Upgrades
Piper Sandler increased its price target from $365 to $395 and maintained an Overweight rating, while KeyBanc raised its target from $360 to $370 with the same rating to reflect confidence in Alphabet’s growth prospects.
2. Robust Q4 Performance
Alphabet’s Q4 revenue grew 18% year-over-year, exceeding prior forecasts of 15.5%, driven by accelerating Search performance throughout 2025 and a 55% quarter-over-quarter jump in Cloud backlog.
3. Growth Investments and AI Adoption
The company’s higher capital expenditures target expansion in Google Services and Cloud, and its Gemini AI assistant has surpassed 750 million monthly active users, underscoring strength in AI-driven engagement.