Alphabet (GOOG) Stock: Analyst Says ‘Ignore the Noise’ After Earnings Beat

TLDR Alphabet posted Q4 revenue of $113.8 billion, up 18% year-over-year, topping $111.5 billion consensus, with EPS at $2.82 beating $2.64 forecast. Google Cloud delivered standout performance with 48% revenue growth to $17.7 billion and 30% operating margin, surpassing Microsoft Azure’s growth. 2026 capex guidance of $175-$185 billion doubles 2025’s $91.5 billion spend, exceeding Street expectations by over $30 billion. J.P. Morgan upgraded price target to $395 from $385, citing strong returns across Gemini, Cloud, and Search despite free cash flow headwinds. Google Cloud backlog surged 55% quarter-over-quarter to $240 billion while Gemini reached 750 million monthly active users. Alphabet delivered a knockout Q4 earnings report. Yet shares dipped in the aftermath. The tech giant reported $113.8 billion in total revenue for the quarter. That’s 18% higher than last year and above the $111.5 billion Wall Street expected. Alphabet Inc., GOOGL Earnings per share hit $2.82. Analysts were looking for $2.64. Google Services accelerated throughout the quarter. But Google Cloud stole the spotlight with revenue climbing 48% to $17.7 billion. That growth rate demolished Microsoft Azure’s 39% increase. Google Cloud also achieved a 30% operating margin, proving profitability at scale. Search revenue grew 17% despite fears that AI chatbots would eat into the business. The doomsday predictions haven’t materialized. Gemini now counts 750 million monthly active users. User engagement has jumped too. Why Investors Hit the Sell Button The earnings beat didn’t matter to traders focused on one number. Capital expenditures. Alphabet spent $91.5 billion on capex in 2025. That matched its guided range of $91-$93 billion. For 2026, management outlined plans to spend $175-$185 billion. That’s roughly double last year’s total. The Street had already pushed estimates to $142 billion at the high end. Alphabet’s guidance sailed past that mark by over $30 billion. J.P. Morgan analyst Doug An...