Alphabet Stock Surged 70%, Here’s Why
Over a transformative year from February 2025 to 2026, Alphabet (GOOGL)’s stock soared 74%, fueled by robust revenue growth, sharper margins, and soaring investor confidence. Behind this surge: standout Q4 results, a cloud boom, AI breakthroughs with Gemini, and a fresh dividend—each playing a key role in the rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 2052025 | 2052026 | Change | |
|---|---|---|---|
| Stock Price ($) | 190.6 | 331.2 | 73.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 350,018.0 | 402,837.0 | 15.1% |
| Net Income Margin (%) | 28.6% | 32.8% | 14.7% |
| P/E Multiple | 23.3 | 30.3 | 30.0% |
| Shares Outstanding (Mil) | 12,229.0 | 12,074.0 | 1.3% |
| Cumulative Contribution | 73.8% |
So what is happening here? The stock rose 74%, driven by a 15% revenue boost, a 15% margin improvement, and a 30% climb in P/E multiple. Let’s explore the key events and moves behind these shifts.
Here Is Why Alphabet Stock Moved
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- Strong Q4 2025 Results: Q4 2025 EPS of $2.82 and revenue of $113.8B beat estimates, showing robust performance.
- Google Cloud Surge: Google Cloud revenue soared 48% to $17.7B in Q4 2025, with operating income doubling.
- AI Momentum & Gemini: Gemini 3 launch and 750M+ users of Gemini App drove AI-powered growth in Search & Cloud.
- Increased AI CapEx: Planned 2026 CapEx of $175-$185B, double 2025, for AI infrastructure & data centers.
- Dividend Program: Alphabet initiated a quarterly cash dividend of $0.21, payable March 16, 2026.
Our Current Assessment of GOOGL Stock
Opinion: We currently find GOOGL stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell GOOGL Stock to see what drives our current opinion.
Risk: A good way to understand GOOGL’s risk is by checking its drawdowns during major market shocks. It fell about 65% in the Global Financial Crisis, 44% during the Inflation Shock, and over 30% in the Covid sell-off. Even the 2018 correction wasn’t kind, with a dip of around 23%. So, while GOOGL looks solid on paper, history shows it’s not immune when markets turn south.
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