"Bank of America Securities analyst Justin Post expects Alphabet to deliver a fourth-quarter revenue and EPS beat, and he slightly raised his forecasts ahead of the Feb. 4 report, citing signs of a steady ad market and potential acceleration in Gemini-related usage. The analyst maintained a Buy rating on Alphabet with a price forecast of $370. Post also said Search growth could land around 15%-16% versus the Street near 13%, while YouTube growth could run about 14%-15% versus roughly 13% expected."
"For the fourth quarter, the analyst expects a revenue of $95.9 billion and EPS of $2.65, above the Street estimates $95.2 billion and $2.64. He expects operating expenses of $28.0 billion, up 13% year-over-year, and operating margin expansion of 119 basis points. Post also pointed to job data showing openings down about 7% quarter over quarter, which he views as evidence of disciplined hiring. The analyst said Alphabet's first-quarter commentary will likely matter most for the stock."
Alphabet enters the fourth quarter with momentum in Search and Cloud driven by rising AI-related usage and stronger advertising demand. Forecasts list fourth-quarter revenue of $95.9 billion and EPS of $2.65, above Street estimates, with operating expenses of $28.0 billion (up 13% year-over-year) and operating margin expansion of 119 basis points. Search growth could reach 15%–16% and YouTube 14%–15%, above prior expectations. First-quarter revenue is seen near $90.1 billion with EPS around $2.56. 2026 capital expenditures were raised to roughly $139 billion, and ad and other income assumptions were increased due to healthier holiday ad checks, favorable FX, and mark-to-market gains.
Read at Benzinga
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