JPMorgan has increased its price objective on Alphabet Inc. to $395.00 from $385.00 while maintaining an Overweight rating, following the company’s fourth-quarter results. At the time of the update, the new target implied roughly a 19% upside relative to the prevailing share price of $331.25, with Alphabet trading close to a 52-week peak of $349.
Alphabet reported faster growth in its two major revenue engines. Search revenue expanded at a 17% clip, while Google Cloud accelerated to 48% year-over-year growth. Those contributions helped drive a 15.1% increase in aggregate revenue over the past twelve months, bringing total revenue to $402.8 billion.
JPMorgan flagged Alphabet’s 2026 capital expenditure guidance of $175 billion to $185 billion as a notable development. That outlook significantly exceeded the firm’s earlier ‘Street-high’ estimate of $142 billion and represents a doubling of capital spending on a year-over-year basis, according to the note. The bank characterized the elevated spending as a reflection of Alphabet’s "position of strength."
Supporting Alphabet’s ability to pursue an expansive capex program, InvestingPro data cited in the note indicates the company carries more cash than debt and maintains a current ratio of 2.01. JPMorgan’s commentary linked that balance-sheet strength to Alphabet’s capacity to support the planned increase in investment.
Product engagement signals were also highlighted. Alphabet’s Gemini AI product has reached 750 million monthly active users, with the bank noting "significantly higher engagement per user." Separately, Google Cloud’s backlog rose 55% quarter-over-quarter to $240 billion, underscoring demand for the firm’s cloud offerings. JPMorgan and other market participants observed that AI adoption is expanding the addressable market for Alphabet’s core Search business.
Other analyst reactions to Alphabet’s results varied across the street. DA Davidson raised its price target to $310 while maintaining a Neutral rating. Stifel increased its target to $395 and assigned a Buy rating. Wedbush lifted its price target to $370 and kept an Outperform rating, noting optimism around generative AI.
Market commentary also emphasized the fourth-quarter 2025 earnings beat, where Alphabet outperformed expectations on both revenue and profit measures. Stifel highlighted the Google Cloud division’s 48% year-over-year growth and a sequential 55% increase in Google Cloud Platform backlog. Cantor Fitzgerald observed Search revenue growth of 15% on an ex-foreign-exchange basis, driven by higher AI-related usage.
On the mobility front, Waymo, Alphabet’s autonomous-vehicle unit, announced an expansion into Sacramento and a return to operations in Boston. The company said it intends to adapt its technology to different urban conditions - including snowy environments - as it pursues full autonomy.
Implications and context - The combination of sustained revenue acceleration in Search and Cloud, a sizable increase in capital allocation and a strong liquidity position frames the investment case JPMorgan presented for a higher valuation. The sizable Cloud backlog and user engagement metrics for Gemini were cited as drivers of both near-term demand and longer-term addressable market expansion for Alphabet’s core products.