TLDR
- Alphabet (GOOGL) has surpassed Apple and Microsoft to become America’s most profitable company
- Google Cloud revenue jumped 48% year-over-year in Q4, driven by AI enterprise demand
- Full-year 2025 revenue exceeded $400 billion for the first time, with net income up 30% to $34.5 billion
- Mizuho reiterated an Outperform rating with a $410 price target on February 18, 2026
- GOOGL stock is up over 60% in the past year, making it the top-performing Magnificent Seven stock
Alphabet has quietly pulled ahead of Apple and Microsoft to claim the title of America’s most profitable company — and the numbers back it up.
The company reported Q4 2025 earnings on February 4, with consolidated revenue of $113.8 billion for the quarter. Full-year 2025 revenue crossed $400 billion for the first time in company history.
Net income rose 30% to $34.5 billion, driven by strong performance in Search and Cloud.
Google Cloud was the standout. Revenue surged 48% year-over-year to $17.7 billion in Q4, fueled by rising demand from enterprises building out AI infrastructure.
The Cloud backlog now stands at $240 billion, suggesting that growth has room to run.
Gemini, Alphabet’s AI platform, is gaining traction too. Paid seats across enterprise customers topped 8 million, spread across more than 2,800 companies. The consumer-facing Gemini app has over 750 million monthly active users.
Google Cloud: From Loss-Maker to Growth Engine
Google Cloud wasn’t always a profit center. It took roughly 15 years to turn a profit, but it’s now one of Alphabet’s most important earnings drivers.
That shift matters. Alphabet can now fund new ventures from a position of strength rather than burning cash across the board.
Waymo, the self-driving car unit, is one of those bets. It’s operating in several U.S. cities and is positioning itself to compete in the ride-hailing market.
For 2026, Alphabet plans to spend between $175 billion and $185 billion in capital expenditures — a deliberate ramp-up in investment.
That’s a big number, but the company has the cash flow to support it.
GOOGL Stock Leads the Magnificent Seven
GOOGL is up more than 60% over the past year, making it the best-performing stock among the Magnificent Seven over that stretch.
Only Nvidia comes close to matching that performance relative to the S&P 500. The rest of the group has lagged, weighed down by slower revenue growth and capex concerns.
Over five years, GOOGL has nearly tripled in value.
The stock carries a 0.28% dividend yield — modest, but Alphabet’s financial position leaves room for increases down the road.
On February 18, 2026, Mizuho Securities analyst Lloyd Walmsley reiterated an Outperform rating on GOOGL with a $410 price target. That target was raised earlier in the month, on February 5, from $400.
Mizuho’s position reflects broader analyst confidence following the Q4 earnings beat and the company’s record revenue milestone.
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