Alphabet Inc. (NASDAQ: GOOGL) closed June 6, 2026 at $368.53, putting the company’s market capitalization at $4.46T after a 12-month range of $162 to $408.61. Fiscal 2025 revenue reached $402.96B (+15.1% year-over-year), with net income of $132.17B and diluted EPS of $10.81. The stock trades at 28.7x trailing earnings, 9.1x book, and 21.2x EV/EBITDA, levels that have re-rated from 17.2x EV/EBITDA at year-end 2024. The data suggests the AI and Cloud capex cycle, $91.4B in 2025 capital spending implied by capex/revenue of 22.7%, is now the central swing factor for advisor-grade allocators evaluating GOOGL.

Company Snapshot

Alphabet operates through three reporting segments per the company’s 10-K filed February 5, 2026: Google Services (Search, YouTube, Android, Chrome, Play, hardware), Google Cloud (GCP infrastructure, Workspace), and Other Bets (Waymo, Verily, health tech). The Communication Services sector classification places Alphabet alongside Meta Platforms and Netflix, though the operational profile spans digital advertising, hyperscale cloud infrastructure, and emerging autonomous mobility. Sundar Pichai has served as CEO of Alphabet since December 2019, with the company headquartered in Mountain View, California and employing 185,719 full-time staff as of the most recent disclosure.

Revenue mix remains advertising-heavy. Based on the company’s quarterly segment disclosures through Q4 2025, Google Services contributes roughly 86% of consolidated revenue, with Google Cloud at approximately 13% and Other Bets under 1%. Within Services, Search advertising still generates the largest single revenue line, followed by YouTube ads and Google Network. Geographic exposure breaks out approximately 47% United States, 30% EMEA, 16% Asia-Pacific, and 7% Other Americas, per Alphabet’s 10-K geographic disclosures.

Beta of 1.27 reflects the stock’s elevated sensitivity to broader market moves relative to the S&P 500, consistent with mega-cap growth equities exposed to both advertising cyclicality and AI capex sentiment. Average daily volume of 31.1M shares supports ample liquidity for institutional allocators.

Recent Financial Performance

The three-year revenue trajectory shows acceleration. Alphabet reported $307.39B in 2023, $350.02B in 2024 (+13.9%), and $402.96B in 2025 (+15.1%). The 2025 acceleration came despite a higher revenue base, pointing to Cloud strength and Search resilience against generative AI substitution concerns that dominated investor discussion in 2023 and 2024.

Margin expansion in 2025 was material. Gross margin widened from 58.2% in 2024 to 59.7% in 2025. EBIT margin moved from 34.3% to 39.4%, and EBITDA margin from 38.7% to 44.7%. Net margin reached 32.8% in 2025, up from 28.6% in 2024. Operating income climbed from $112.39B to $129.17B, while EBITDA grew from $135.39B to $179.96B, a 32.9% increase that outpaced revenue growth and reflects operating leverage on Search and YouTube monetization.

Earnings power scaled accordingly. Net income rose from $73.80B (2023) to $100.12B (2024) to $132.17B (2025). Diluted EPS expanded from $5.80 to $8.04 to $10.81 over the same window, a 35-month compound growth rate of roughly 36% on EPS. Diluted weighted-average shares outstanding declined from 12.72B to 12.45B to 12.23B, reflecting ongoing buybacks consistent with the $70B authorization Alphabet’s board approved in April 2024 per the related 8-K filing.

Cash generation tells a more complex story. Operating cash flow per share reached $13.59 in 2025, but free cash flow per share fell to $6.05 from $5.91 in 2024, essentially flat despite the EPS surge. The reason: capital expenditure per share jumped from $4.26 to $7.55, an implied capex of approximately $91.4B in 2025 versus $52.5B in 2024. The capex-to-revenue ratio expanded from 15.0% to 22.7%. Free cash flow yield compressed to 1.93% from 3.12%, a key consideration for income-oriented advisor mandates. The dividend payout ratio of 7.6% and dividend yield of 0.27% confirm the company prioritizes reinvestment and repurchases over distributions.

Balance sheet metrics remain conservative. The current ratio improved to 2.01, debt-to-equity sits at 0.143, and net-debt-to-EBITDA registers 0.16x. Interest coverage of 903x reflects nominal leverage relative to operating profit. Return on equity reached 31.8% in 2025, with return on invested capital of 21.8%.