Alphabet: A Powerful Earnings Beat Likely Coming Again (Earnings Preview)

Oakoff InvestmentsInvesting GroupFollow5ShareSavePlay(11min)CommentsSummaryAlphabet is upgraded from Hold to Buy ahead of Q1 2026 earnings, reflecting underestimated AI momentum and balanced hardware/software strategy.Gemini's rapid market share gains and deepening user engagement offset previous fears of Search cannibalization, positioning GOOG for superior monetization.Massive AI-driven CAPEX and custom silicon investments are justified by accelerating GCP revenues, a $240B backlog, and significant serving cost reductions.GOOG trades below its 10-year average P/E; EPS is projected to triple in 5 years, supporting a fair value 26%+ above current levels despite CAPEX risks.Looking for more investing ideas like this one? Get them exclusively at Beyond the Wall Investing. Learn More »Dzmitry Dzemidovich/iStock via Getty Images Previewing Alphabet's Upcoming Earnings Release Last time I looked at Alphabet (GOOG), in July 2025, the stock was trading at ~$176/share, and I saw a diminishing margin of safety, whereas Microsoft (MSFTThis article was written byOakoff Investments10.26K FollowersFollowOakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information. He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.