DA Davidson raised its 12-month price target on Alphabet (NASDAQ: GOOGL) to $310 from $300 after reviewing the company’s fourth-quarter 2025 financials, but the firm stopped short of upgrading its stance and kept a Neutral rating.
The research note highlighted Alphabet’s "strong 4Q25 earnings," which outperformed expectations on both revenue and profit lines. The firm pointed specifically to a "significant acceleration" in the Google Cloud division as a primary driver behind the upbeat results.
Alphabet now trades at roughly $331.25 per share and carries a market capitalization above $4 trillion. The company’s reported price-to-earnings ratio stands at 30.81. For the full year, Alphabet posted revenue of $402.84 billion, representing 15.09% growth year-over-year.
Earnings snapshot
For the fourth quarter, Alphabet reported revenue of $113.8 billion, an 18% increase versus the same period a year earlier. Operating income for the quarter was $35.9 billion, a 16% year-over-year rise, although that operating income figure fell slightly short of some analyst estimates.
Cloud momentum and demand profile
DA Davidson emphasized growing demand for Google Cloud Platform services, noting particular strength in compute and artificial intelligence offerings. The firm described the pickup as being "driven primarily through the enterprise" segment, signaling solid adoption of Alphabet’s cloud technologies by corporate customers.
Other brokerages flagged the Cloud division as a standout. Stifel called out 48% year-over-year growth for Google Cloud and raised its price target to $395. Needham moved its target to $400, while Wedbush raised its target to $370, all citing the quarterly performance. Cantor Fitzgerald kept an Overweight rating and noted that Alphabet’s revenue and EBIT surpassed Street estimates by 2% and 3%, respectively.
Valuation and broader analyst context
Despite upward revisions to target prices from multiple firms, DA Davidson’s Neutral rating reflects a balanced view on valuation following the earnings release. InvestingPro’s Fair Value assessment referenced in coverage suggests Alphabet could be currently overvalued, while the broader analyst consensus score remains strongly bullish at 1.37.
Corporate developments
Alphabet’s autonomous vehicle unit, Waymo, announced geographic moves that include expansions to Sacramento and a return to Boston, signaling continued investment in testing and development for autonomous driving technology. These operational steps underscore the company’s broader strategic initiatives alongside its core advertising and cloud businesses.
Takeaway
DA Davidson’s modest increase to a $310 price target underscores the tangible effect of Google Cloud’s acceleration on Alphabet’s outlook, but the firm’s Neutral rating and comments on valuation reflect lingering caution. The quarter’s revenue growth and strong cloud performance prompted multiple price-target raises across the sell side, even as some profit metrics were slightly beneath certain expectations.