Following an impressive fourth-quarter performance by Alphabet Inc. (NASDAQ: GOOGL), leading financial institutions Piper Sandler and KeyBanc Capital Markets have revised their price targets upwards, maintaining a positive outlook on the tech giant. This comes as the company continues to demonstrate strong growth across its diverse portfolio, particularly in emerging technologies like artificial intelligence and cloud services.
On February 6, Piper Sandler elevated its price target for Alphabet from $365 to $395, reaffirming its 'Overweight' rating. This adjustment was made in response to Alphabet's exceptional Q4 2025 earnings report. Piper Sandler noted the company's total revenue growth surged to 18%, significantly surpassing their initial forecast of 15.5%. The firm characterized these results as universally strong, prompting an upward revision of their financial projections for Alphabet.
Concurrently, KeyBanc Capital Markets also adjusted its price target for Alphabet Inc. (NASDAQ: GOOGL) on the same date, increasing it from $360 to $370, while reiterating an 'Overweight' rating. KeyBanc's analysis highlighted Alphabet's increased capital expenditures, strategically directed towards bolstering growth in its Google Services and Google Cloud divisions. Despite potential concerns regarding the scale of these investments, KeyBanc emphasized the consistent strength of performance metrics across all of Alphabet's business segments.
KeyBanc further pointed out the accelerated growth experienced by Google Search throughout 2025 and a remarkable 55% quarter-over-quarter increase in Google Cloud's backlog during Q4 2025. Additionally, the success of Gemini, Alphabet's AI assistant, was highlighted, which has now garnered over 750 million monthly active users, showcasing the company's strong position in the AI landscape.
Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google, is a global technology powerhouse offering a wide array of products and services including Search, Ads, Chrome, Cloud, YouTube, and Android. The company's strategic focus areas encompass artificial intelligence, cloud computing, and hardware innovation. The positive analyst revisions underscore the market's confidence in Alphabet's strategic direction and its capacity for sustained financial growth driven by its robust technological advancements and expanding market presence.