JPMorgan Upgrades Alphabet’s Target, Sees Strong 2026 Growth

JPMorgan Chase & Co. has expressed optimism for the technology sector, specifically highlighting Alphabet Inc. (NASDAQ:GOOG) with an upgraded price target of $385, up from $340. This adjustment reflects the firm’s confidence in Alphabet’s ongoing revenue growth as it approaches 2026. The bank maintains an Overweight rating on Alphabet’s shares, indicating a positive outlook for the company’s performance in the coming years.

In the third quarter of 2025, Alphabet marked a significant milestone by achieving its first-ever quarterly revenue exceeding $100 billion. The company reported total revenue of $102.3 billion, representing a 16% increase year-over-year. Additionally, Alphabet’s net income surged by 33% to $35 billion, which translated to earnings per share (EPS) of $2.87, a remarkable 35% rise compared to the previous year.

The robust growth can be attributed to various core business segments, particularly advancements in artificial intelligence. Alphabet’s Google Services revenue climbed 14% year-over-year, reaching $87.1 billion. The Google Cloud segment stood out as the fastest-growing area, with a remarkable revenue of $15.2 billion, marking a 34% increase. YouTube Advertising revenue also contributed to the overall performance, increasing 15% year-over-year to $10.3 billion. YouTube is implementing a dual monetization strategy, leveraging both advertising and subscription services to maximize revenue.

Alphabet operates a diverse range of products and platforms across various regions, including the United States, Europe, the Middle East, Africa, Asia-Pacific, Canada, and Latin America. Its business structure encompasses Google Services, Google Cloud, and Other Bets segments, showcasing its extensive reach and adaptability in the market.

While JPMorgan acknowledges the growth potential of Alphabet, the firm also suggests that certain AI-focused stocks may present greater opportunities for investors seeking higher returns with limited downside risk. The market is seeing an increasing interest in AI-related investments, prompting discussions about stocks that may outperform established players like Alphabet.

As Alphabet continues to innovate and expand its services, the company appears well-positioned to capitalize on the growing demand for digital solutions and technological advancements. The forecast for the internet sector remains promising, with expectations of sustained revenue growth through 2026, driven by key players in the technology landscape.