Alphabet (Class C) (GOOG)
Communication Services · $4.30T market cap · SEC CIK 0001652044
fundamentals score out of 100
Next reports on Oct 27, 2026, after the close, with analysts expecting $3.12 in earnings per share.
The case for GOOG
- Revenue up 20.1% on the year.
- Earns 51% back on shareholder equity.
- Generated $73.3B of free cash flow in FY2025, 18% of revenue.
- 55% of revenue drops through to net profit.
- Earnings per share up 115.3%.
- Reasonably priced at 17.6× earnings.
The case against
- Price/sales of 9.6× is higher than 100% of Communication Services companies.
- Weakest against its peers: free-cash-flow yield of 1.7% is lower than 81% of Communication Services companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 45 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 87 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 89 |
| Momentumhow the price has behaved lately | 63 |
| Stabilityhow violently it moves, what it owes and what it pays you | 50 |
- Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.
Key numbers
| Price / earnings | 17.6× |
|---|---|
| Price / book | 6.76× |
| Price / sales | 9.6× |
| Revenue growth (YoY) | +20.1% |
| EPS growth (YoY) | +115.3% |
| Gross margin | 61% |
| Operating margin | 33% |
| Net margin | 55% |
| Return on equity | 51% |
| Debt / equity | 0.15× |
| Current ratio | 2.72 |
| Dividend yield | 0.24% |
| Beta | 1.21 |
| 52-week range | $235.84 – $408.61 |
| Position in that range | 65% of the way up |
| 3-month return | -3.5% |
| 1-year return | +39.4% |
Five years of financials, as filed
Pulled from Alphabet (Class C)'s XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $403B | $350B | $307B | $283B | $258B |
| Operating income | $129B | $112B | $84.3B | $74.8B | $78.7B |
| Net income | $132B | $100B | $73.8B | $60.0B | $76.0B |
| Operating cash flow | $165B | $125B | $102B | $91.5B | $91.7B |
| Capital expenditure | $91.4B | $52.5B | $32.3B | $31.5B | $24.6B |
| Total assets | $595B | $450B | $402B | $365B | $359B |
| Total liabilities | $180B | $125B | $119B | $109B | $108B |
| Shareholder equity | $415B | $325B | $283B | $256B | $252B |
| Cash | $30.7B | $23.5B | $24.0B | $21.9B | $20.9B |
| Long-term debt | $46.5B | $10.9B | $11.9B | $15.3B | $15.4B |
| Free cash flow | $73.3B | $72.8B | $69.5B | $60.0B | $67.0B |
| Operating margin | 32.0% | 32.1% | 27.4% | 26.5% | 30.6% |
| Net margin | 32.8% | 28.6% | 24.0% | 21.2% | 29.5% |
| Diluted shares | 12.2B | 12.4B | 12.7B | 13.2B | — |
Share count is down 7.1% over 3 years. Buybacks have been shrinking the pie.
What Alphabet (Class C) says it does
and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. The following table presents segment operating income (loss) (in millions). Year Ended December 31, 2024 2025 Operating income (loss): Google Services $ 121,263 $ 139,404 Google Cloud 6,112 13,910 Other Bets (4,444) (7,515) Alphabet-level activities (1) (10,541) (16,760) Total income from operations $ 112,390 $ 129,039 (1) Alphabet-level activities primarily reflect expenses related to our shared AI research and development. Google Services Google Services operating income increased $18.1 billion from 2024 to 2025. The increase in operating income was primarily driven by an increase in revenues, partially offset by an increase in expenses related to legal and other matters, TAC, and content acquisition costs. Google Cloud Google Cloud operating income increased $7.8 billion from 2024 to 2025. The increase in operating…
Risk factors GOOG lists in its 10-K
- Google Subscriptions, Platforms, and Devices
- Cash, Cash Equivalents, and Marketable Securities
- Sources, Uses of Cash and Related Trends
- Cash Provided by Operating Activities
- Liquidity and Material Cash Requirements
- Purchase Commitments and Other Contractual Obligations
- Fair Value Measurements of Non-Marketable Equity Securities
- 12-Month Average As of December 31,
- Opinion on the Financial Statements
- How We Addressed the Matter in Our Audit
- Opinion on Internal Control Over Financial Reporting
- Definition and Limitations of Internal Control Over Financial Reporting
- (in millions, except par value per share amounts)
- Liabilities and Stockholders’ Equity