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Alphabet Inc. (GOOGL) shares have risen 78.9% over the past year, greatly surpassing the Zacks Computer and Technology sector’s increase of 26.9% and the Zacks Internet Services industry’s growth of 75.5%. This surge is driven by Alphabet’s aggressive push in artificial intelligence (AI) across its search and cloud computing platforms.
For the third quarter of 2025, Google Cloud’s backlog grew 46% to $155 billion, while revenues climbed 34% year-over-year. The number of new Google Cloud Platform (GCP) customers also increased by 34%, and more than 70% of existing customers are using AI products. The consensus estimate for Alphabet’s fourth-quarter 2025 earnings is $2.58 per share, indicating a 20% year-over-year growth.
Despite strong performance and significant investments in AI, Alphabet faces challenges due to potential capacity constraints and increasing operational costs. Analysts recommend a cautious approach, with a Zacks Rank of #3 (Hold).
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