Evercore ISI Reiterates Outperform Rating on Alphabet, $400 Price Target

Evercore ISI analyst Mark Mahaney reiterated an Outperform rating and $400.00 price target on Alphabet (NASDAQ: GOOGL).

“In the wake of our eighth quarterly proprietary Search survey and very recent ad channel checks, we are reiterating our GOOGL Outperform call and $400 PT.

The Iran War remains a wild card, and our ad channel checks picked up marketer caution over the last 10 days.

That said, overall Q1 ‘Net ad spend growth appears to have matched or even exceeded Q4 growth.

Respectful of the wild card, we have increased confidence in our above consensus DD% Google Search Revenue growth outlook (14%+ in ’26 vs. 13% Street), based on both HSD% Paid Click & CPC growth.

Key Survey Takes: 1) Our survey has tracked something of a stall-out in ChatGPT Search share over the last two quarters (13% share in Aug 25 to 11% in March 26), with a recovery in Google’s share from 70% to 75% over that same period.

2) Our survey work has tracked no material change or slippage in Google’s share of commercial-intent Search use cases – e.g.

Google’s selection as a top site for Buying Clothes or Booking Airline Flights has not changed over the past two years.

And 3) Our survey indicates that Google’s Gen AI innovations are creating an overall better Search experience for users, driving incremental Search queries – among Gen AI users, 52% are searching more.

Key Channel Check Takes: 1) Our checks are largely – tho not uniformly – tracking consistent or even accelerating Y/Y growth for ‘Net ad spend in Q1 vs.

Q4 – tho signs of caution have arisen in the past 10 days.

2) Our checks are tracking consistent or accelerating Search revenue growth in Q1 – with our most accurate Google Search check tracking acceleration on a 1-year and 2-year basis.

And 3) Our checks are tracking consistent Search spend ROI, with conversion rates rising commensurate with CPC increases – one check has tracked a doubling in Conversion rate from 7% in Q1:25 to 14% in Q1:26.”

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