TLDR
- Alphabet (GOOGL) stock closed at $340.28 on Oct. 20, down 1%, ahead of Q3 earnings on Oct. 28 after the close.
- Analysts expect $2.94 per share, up 2% from $2.87 a year ago. Alphabet has beaten EPS estimates four quarters in a row.
- Google Cloud revenue growth hit 82% in Q2, well above Azure at 43% and AWS at 37%.
- The stock is up 33% over the past year but only about 7% in 2026, and it trails the S&P 500 this year.
- Of 53 analysts, 46 rate it Strong Buy, and the average price target is $432.56.
Alphabet (GOOGL) stock closed at $340.28 on Oct. 20, down $3.91 or 1%. It traded between $338.36 and $344.77 during the session.
The company reports third-quarter results on Wednesday, Oct. 28, after the market closes. Wall Street is watching Google Cloud most closely.
Analysts expect earnings of $2.94 per share on a diluted basis. That is up 2% from $2.87 in the same quarter last year.
Alphabet has topped EPS estimates in each of its last four reports. For the full year, analysts see EPS of $20.60, up 91% from $10.81 in fiscal 2025.
Stock performance and valuation
The stock sits well below its 52-week high of $408.61. Its 52-week low is $249.29.
Barchart says Alphabet is up 33% over the past year. The S&P 500 gained 15% and the Communication Services ETF (XLC) fell 5% in that time.
Motley Fool columnist Keithen Drury takes a shorter view. The stock is up about 7% this year, after being up more than 25% at the start of May.
That means Alphabet now trails the S&P 500 for 2026. Drury thinks that could change after earnings.
Drury values the stock on operating earnings, since the regular P/E ratio is skewed by investment gains. At about 27 times operating income, he says Alphabet trades close to its peers.
He calls the stock fairly valued, so results should drive the price from here. Analysts lean positive, with 46 of 53 rating it Strong Buy, three Moderate Buy and four Hold.
The average price target is $432.56, which is 27% above current levels.
Google Cloud in focus
Google Cloud revenue growth reached 82% in the second quarter. That compares with 63% in the first quarter and 48% in the fourth quarter of 2025.
Microsoft Azure grew 43% in its latest quarter, and Amazon Web Services grew 37%. Google Cloud is the fastest grower of the three.
Alphabet plans to spend $195 billion to $205 billion on capital expenditures this year, mostly on data centers. Drury says earlier spending appears to be paying off.
The company has also started selling its custom TPU chips to some clients, rather than offering them only through Google Cloud. Alphabet expects most of that revenue in 2027.
Barchart lists rising AI infrastructure spending and regulatory scrutiny as key risks. Drury thinks Google Cloud could post triple-digit growth.
Alphabet is valued at about $4.2 trillion heading into the report. The stock closed at $340.28 on Oct. 20, with earnings due Oct. 28 after the close.
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