Alphabet enters its Q3 2026 earnings with a consensus revenue estimate of $127.9 billion and a target EPS of $2.94, while the current stock price of $314.19 remains significantly below the average analyst target of $430.51.
Investors are primarily focused on whether rapid growth in Google Cloud and AI-driven search can justify the company’s escalating capital expenditures.
Alphabet’s infrastructure spending is projected to reach record levels this year, leading to increased scrutiny of free cash flow after it recently dipped into negative territory. Additionally, analysts are watching for continued search advertising resilience amidst the broader integration of generative AI features.