TLDR
- Alphabet reports Q1 2026 earnings on April 29 after market close
- Analysts expect EPS of $2.63 on revenue of $106.89 billion, up ~19% year-over-year
- Google committed up to $40 billion to AI startup Anthropic, with $10 billion upfront
- Options traders are pricing in a 5.59% move in either direction post-earnings
- Wall Street holds a Strong Buy consensus with an average price target of $387.68
Alphabet heads into its Q1 2026 earnings report on April 29 with Wall Street watching closely. The company will release results after the market closes, with analysts expecting revenue of $106.89 billion — roughly 19% higher than the same quarter last year.
EPS is forecast at $2.63, which would be about 6.4% lower year-over-year. Despite that dip, Alphabet has beaten earnings estimates in each of the last nine quarters, giving investors reason to expect another positive surprise.
GOOGL stock is up around 8% year-to-date as of April 24, comfortably ahead of the S&P 500’s roughly 4% gain over the same period.
Big Moves Before the Bell
In the weeks leading up to earnings, Alphabet has been busy. The company pledged up to $40 billion in Alphabet’s AI startup Anthropic, including an immediate $10 billion tied to Google Cloud and chip usage.
At Google Cloud Next ’26 in Las Vegas on April 22, Google unveiled the TPU v8 — its eighth-generation AI chip. It comes in two versions: one built for training large models and one for fast AI inference.
Google also expanded its Gemini AI integration in Chrome to regions including India and Canada, potentially reaching over 3.5 billion users directly through their browsers.
On the security front, Google completed its acquisition of cloud security firm Wiz on March 11. Wiz will operate under Google Cloud while keeping its own brand.
Google also introduced TurboQuant on March 24, a compression algorithm designed to cut memory demands for large AI models without sacrificing accuracy.
In quantum computing, Google said it is expanding into neutral atom quantum computing alongside its existing superconducting qubit work, hiring Dr. Adam Kaufman to lead the effort.
What Analysts Are Saying
Evercore ISI’s Mark Mahaney kept his Outperform rating and $400 price target. He expects a modest beat, pointing to solid Search trends and strong Google Cloud demand. He flagged YouTube as a potential soft spot and warned that margin gains may be limited due to rising data center costs and AI-related hiring.
Bank of America’s Justin Post reiterated a Buy rating with a $370 target, calling Alphabet a “top pick.” He sees Gemini boosting search usage and monetization, and expects cloud growth to accelerate. BofA also raised its 2026 EPS estimate for the company ahead of the print.
Post flagged risks including higher AI spending, possible ad slowdown, and growing competition.
Options traders are pricing in a 5.59% swing in either direction following the earnings release.
Wall Street’s overall consensus sits at Strong Buy, based on 26 Buy ratings and five Holds. The average price target of $387.68 implies about 12.57% upside from current levels.
Apple is also reportedly planning to open Siri to third-party AI assistants beyond ChatGPT, which could give Google’s Gemini an opening on Apple devices.
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