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HSBC Research Elevates Alphabet (GOOGL.US) TP to US$385, Raises Cloud Biz Forecast
2026-02-06 15:33:19
Alphabet (GOOGL.US)'s 4Q25 total revenue grew by 18% YoY to US$113.9 billion, ahead of the market consensus of US$111.4 billion, HSBC Global Research issued a research report saying.

Overall EBIT increased by 16% YoY to US$35.9 billion, but missed market expectation by 2.7%, mainly due to expanded losses in the Other Bets business and at the group level.

However, if adjusted for an one-off employee compensation expense of US$2.1 billion related to Waymo, EBIT would reach US$38 billion, 3% higher than market consensus.

HSBC Global Research raised its FY2026 cloud business revenue forecast by 10.7% to US$95 billion, and its EBIT forecast by 36% to US$31 billion. Therefore, the broker kept rating at Buy, and elevated its target price from US$370 to US$385.
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