Goldman Sachs Raises Alphabet Price Target to $400

Goldman Sachs analyst Eric Sheridan raised the price target on Alphabet (NASDAQ: GOOGL) to $400.00 (from $375.00) while maintaining a Buy rating.

“Alphabet’s Q4’25 earnings report revolved around a few key themes: 1) Search & Other demonstrated strong growth (accelerating again) with strong momentum in the commerce vertical mentioned; 2) YouTube Ads segment revenue growth missed our estimates (decelerating from last quarter) but with management highlighting continued momentum for YouTube subscriptions (TV, Premium/Music and Sunday Ticket) – as we wrote in our deep dive report last year (link), we continue to believe that analyzing YouTube as a consolidated entity (across both revenue segments), while not explicitly disclosed by the company, likely tells a more fulsome picture of the revenue dynamic that more closely aligns with the consumption trends; 3) Cloud revenue growth of +48% YoY well exceeded our expectations (of +40% YoY) and revenue backlog of ~$240bn (+158% YoY; ~50% of which is expected to be realized over the next 24 months) being highly supportive of the sustained topline growth for the Cloud segment; 4) Alphabet confirming a recent Waymo funding round (& disclosing they had led it) likely leading to an acceleration of the unit’s efforts to grow their go-to-market; & 5) continued execution by GOOGL mgmt on balancing margins with growth investments as both Service Operating Income and Cloud Operating Income exceeded our estimates.”

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