Alphabet (GOOGL) PT Raised to $425 at Piper Sandler; 'Cloud & Search Combine to Deliver Stellar Results'

Piper Sandler analyst Thomas Champion raised the price target on Alphabet (NASDAQ: GOOGL) to $425.00 (from $395.00) while maintaining an Overweight rating.

The analyst commented: "Cloud & Search Combine to Deliver Stellar Results; 1Q26 results beat across the board. Total revenue of $109.9B grew 22% y/y, 1.6% above PSC, driven by record Cloud performance and continued Search strength. The backlog nearly doubled sequentially. Operating income of $39.7B was 5.7% above PSC. We raise estimates and raise our PT to $425 (from $395). Reiterate OW.

Cleanest Story in our Mega-Cap Coverage: Google stands out as the cleanest print of the mega-cap cohort this earnings season. Search is growing 19% at enormous scale with no signs of AI-driven disruption. Queries are at an all-time high and AI Mode and AI Overviews are driving incremental usage, not cannibalization. Cloud is accelerating dramatically with expanding margins (32.9%, +340bps vs. PSC), a backlog that nearly doubled in a single quarter, and a credible path to continued share gains. Google is also ramping capex, but investors appear to have more comfort given the significant backlog expansion and operating leverage."

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