Alphabet Inc Class A (GOOGL)
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Alphabet is the most analyzed company in the world — and precisely for that reason hardly anyone actually reads what its annual report (10-K) says. We did: $402.8 billion in revenue and $132.2 billion in net income for 2025, a cloud order backlog that quintupled to $467.6 billion in 15 months — but also $91.4 billion in AI investment with a growing depreciation burden, a final antitrust judgment in Washington, a threatened partial break-up of the ad business, $15.6 billion in legal accruals and a quarterly profit more than half of which consisted of unrealized valuation gains on stakes. Our value scanner based on Joel Greenblatt's Magic Formula lights up anyway. Not investment advice — we merely read the back of the most famous package on the market.
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
–Not yet rated — we only show a category once an SEC-backed file with at least two cited passages is available. How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 2.15 | 30.90 | 96,469 | 11.80 | 27.50 | 39,113 | 24,837 |
| 2025: Q1 | 2.81 | 48.80 | 90,234 | 12.00 | 38.30 | 36,150 | 18,953 |
| 2025: Q2 | 2.31 | 22.30 | 96,428 | 13.80 | 29.20 | 27,747 | 5,301 |
| 2025: Q3 | 2.87 | 35.30 | 102,346 | 15.90 | 34.20 | 48,414 | 24,461 |
| 2025: Q4 | 2.82 | 31.10 | 113,896 | 18.10 | 30.30 | 52,402 | 24,551 |
| 2026: Q1 | 5.11 | 82.00 | 109,896 | 21.80 | 56.90 | 45,790 | 10,116 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Globally dominant attention platforms (Search, YouTube, Android) plus the fastest-growing segment, Google Cloud (+63 percent in the first quarter of 2026), with its own AI stack of Gemini models and TPU chips; the cloud order backlog of $467.6 billion is contractually underpinned (10-Q as of March 31, 2026).
$402.8 billion in revenue and $132.2 billion in net income in 2025, $164.7 billion in operating cash flow, $126.8 billion in cash/securities and Altman-Z about 10 — plus $45.4 billion in buybacks in 2025 and a growing dividend ($0.22 per quarter since April 2026).
More than 70 percent advertising share while the distribution model is being legally rebuilt: a Search final judgment with data-sharing obligations (both sides appealing), threatened structural remedies in the ad-tech business, a $3.5 billion EU fine, DMA proceedings — and $15.6 billion in short-term legal accruals (10-K 2025).
$91.4 billion in investments in 2025, "significantly more" for 2026; depreciation rising significantly per the company's own filing; notes sextupled to $79.1 billion within 15 months, plus data center and energy guarantees of roughly $37 billion plus about $15.3 billion newly added in April 2026 (10-K 2025; 10-Q as of March 31, 2026).
A P/E of about 26 is fair for this quality, not a euphoria price (data as of July 8, 2026) — but the quarterly profit in early 2026 consisted of more than half unrealized valuation gains on stakes, and measured on free cash flow the stock costs about 57 times; insiders most recently reported 17 sells versus 3 buys.
Alphabet is the rare double of quality company and value-scanner hit: dominant platforms, a booming cloud with nearly half a trillion dollars in order backlog, a fortress balance sheet and a P/E of about 26 that is fair for this strength. Set against this are two open mega-bets no scanner can price: whether the most expensive investment wave in company history ($91.4 billion in capex in 2025, "significantly more" in 2026, fast-rising depreciation, sextupled note debt, billions in guarantees for third-party data centers) converts into real returns — and whether the courts merely file at the advertising foundation or cut deeper. The reported record profit moreover contains a growing paper share from valuation gains on stakes. Not investment advice.
- The analysis covers both listed share classes: GOOGL (Class A, voting) and GOOG (Class C, non-voting) represent the same economic interest in Alphabet; the unlisted Class B secures the founders 52.7 percent of the votes.
- The net income of the first quarter of 2026 ($62.6 billion) included $36.9 billion in unrealized book gains on non-marketable stakes; the operating income of $39.7 billion is the more reliable measure. The 2025 profit also included $24.1 billion in valuation gains.
- Price and valuation figures are dated to July 8, 2026 (about $344 per A share, about $4,194 billion in market value); analyses are evergreen, daily prices are not a buy argument.
- The scanner membership was checked twice: data as of July 8, 2026 (Greenblatt, Zweig, Buffett criteria) and a live check on July 14, 2026 (Greenblatt and Zweig confirmed; the Buffett criteria had meanwhile dropped out).
About the Company
Alphabet Inc. bietet diverse Produkte und Plattformen in den USA, Europa, dem Nahen Osten, Afrika, dem asiatisch-pazifischen Raum, Kanada und Lateinamerika an.
| IPO Year | 2004 |
|---|---|
| Next Earnings | 22. Jul 2026 |
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Data as of: July 2, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.