September 9, 2025

Overview Alphabet

Alphabet Inc., headquartered in Mountain View, California, is the parent company of Google, YouTube, Android, Waymo, DeepMind, and Google Cloud. It trades under two primary stock symbols:

• GOOGL (Class A) – Offers one vote per share, granting voting rights to shareholders.
• GOOG (Class C) – No voting rights, although shareholders retain the same economic stake.

These classes share the same economic value and dividend rights, but only GOOGL grants voting power in corporate decisions.

Why the distinction? In 2014, Alphabet introduced Class C shares to allow the company to issue new shares—used for capital raising or employee compensation—without diluting control held by founders Larry Page and Sergey Brin, who retain control via super-voting Class B shares (10 votes per share, not publicly traded).

Recent developments

In September 2025, Alphabet received the outcome of a major U.S. antitrust trial. Regulators accused Google of maintaining an illegal monopoly in search by using exclusive contracts to secure its position on browsers and mobile devices. The court confirmed Google had abused its dominance, but stopped short of imposing a breakup. Instead, the remedies include ending certain default contracts, limited data-sharing with rivals, and restrictions on self-preferencing. Investors welcomed the ruling as a relief compared to harsher scenarios, and Alphabet’s shares rose 6–9% following the news.

At the same time, Alphabet has been advancing its artificial intelligence capabilities across both software and hardware. The company unveiled its next-generation AI processor, Ironwood, designed to accelerate performance for large-scale AI models, including generative AI applications in Google Search, Cloud, and other products. This innovation positions Alphabet to strengthen its AI infrastructure and maintain a competitive edge in the rapidly growing AI market.

The numbers

Revenue ($B): 371.40 (2025), 350.02 (2024), 307.39 (2023)

Gross Profit Margin (%): 58.94 (2025), 58.20 (2024), 56.63 (2023)

Operating Margin (%): 32.68 (2025), 32.11 (2024), 27.42 (2023)

EBITDA ($B): 153.37 (2025), 130.91 (2024), 94.11 (2023)

Net Income ($B): 115.57 (2025), 100.12 (2024), 73.80 (2023)

Normalized EPS ($): 8.52 (2025), 7.94 (2024), 6.05 (2023)

Dividends per share ($): 0.81 (2025), 0.60 (2024), – (2023)

P/E Ratio: 24.72 (2025), 25.11 (2024), 26.76 (2023)

Source: Morningstar September 8, 2025

Behind the numbers

Alphabet’s recent financials show a story of strong and consistent growth. Revenue has steadily increased from $307 billion in 2023 to $371 billion in 2025, reflecting continued demand for Google Search, YouTube advertising, and Google Cloud. Gross profit margins are high, around 57–59%, showing strong control over costs and the scalability of Alphabet’s digital business model. Operating income and EBITDA have also grown significantly, highlighting the company’s operational efficiency.

Net income and normalized EPS tell a complementary story. Net income has increased from $73.8 billion in 2023 to $115.6 billion in 2025, while normalized EPS rose from $6.05 to $8.52 over the same period. This demonstrates Alphabet’s ability to consistently convert revenue into shareholder value. Dividends per share have also started to appear, reaching $0.81 in 2025, showing Alphabet’s early steps toward returning cash to shareholders.

The company’s P/E ratio of 24.72 indicates that despite strong growth and high profitability, Alphabet is trading at a reasonable valuation for a leading tech innovator, particularly given its investments in AI and cloud computing. Overall, the numbers highlight a business that is both profitable and positioned for long-term growth.

Outlook and key considerations

Alphabet is in a phase of strong and consistent growth, with its core businesses in search, digital advertising, and cloud computing performing robustly. Revenue has steadily increased, and profitability metrics—including gross, operating, and net margins—remain high, reflecting operational efficiency and scalable digital operations. Looking ahead, the company’s strategy focuses on expanding its capabilities in artificial intelligence, including the deployment of next-generation AI chips like Ironwood TPUs, which will enhance performance across Google Cloud, search, and generative AI applications.

Investors should note that, while Alphabet has resolved major regulatory uncertainties such as the recent antitrust case, ongoing scrutiny and potential new regulations could pose risks. On the positive side, the company’s operational efficiency is strong, earnings are steadily growing, and dividends have been introduced, signaling confidence in cash flow stability and long-term financial health.

Overall, Alphabet appears well-positioned for continued growth, with a combination of high profitability, innovation in AI and cloud, and strategic investments that support its market leadership and long-term outlook.

Recommendation: Buy

Alphabet’s stock continues to benefit from strong growth in its core businesses, including Google Search, YouTube advertising, and Google Cloud, while also positioning itself as a leader in artificial intelligence through investments in AI products and next-generation AI chips like Ironwood TPUs. With the recent antitrust case resolved, regulatory uncertainty has been reduced, allowing the company to focus fully on growth initiatives and innovation.

Given Alphabet’s strong financial performance, high profitability, and a P/E ratio that is reasonable for a leading tech company, the stock appears attractive for investors seeking both growth and stability. Overall, the combination of a dominant market position, ongoing innovation, and solid financials supports a Buy recommendation.

This outlook is based on a 12- to 18-month view. This analysis is for informational purposes only and does not constitute professional investment advice. Readers should conduct their own research or consult a financial advisor before making investment decisions.

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