Truist Securities has raised its target price on Alphabet Inc. (NASDAQ:GOOGL) to $385.00 from $350.00 while keeping a Buy rating on the stock. The new valuation assumes additional upside for Alphabet, which is trading close to a 52-week high of $349 and has produced a 74.75% total return over the past year.
The firm pointed to Alphabet’s stronger-than-expected fourth-quarter results as the catalyst for the change. Truist highlighted a healthy advertising market and accelerating momentum across Alphabet’s Search and Cloud businesses, describing that performance as "impressive" given the company’s scale. Those results are consistent with Alphabet’s reported 13.4% year-over-year revenue growth, which brought trailing twelve-month revenue to $385.48 billion.
Truist analysts argued that Search performance indicates generative AI is enlarging the Search total addressable market (TAM). In their view, Google remains "the monetization engine of choice" in what the firm characterized as Google’s "war to lose." The bank emphasized that higher user engagement and improved ad monetization in Search, together with Cloud strength, are being driven by AI integration and growing AI workloads.
Truist also addressed Alphabet’s guidance for higher capital expenditures in 2026. The firm said the elevated capex is supportable provided Alphabet continues to expand revenue and profitability and can sustain shareholder capital returns via buybacks and dividends.
Other sell-side activity mirrored the bullish trend. Goldman Sachs raised its price target on Alphabet to $400, citing strong Cloud growth while flagging a slowdown in YouTube Ads revenue growth. Citizens reissued a Market Outperform rating with a $385 price target, pointing to the influence of artificial intelligence on Google’s operations. Bernstein increased its target to $335, framing Alphabet as a stable option for investors focused on AI and advertising.
Alphabet’s Cloud segment posted a notable 48% year-over-year revenue gain, outpacing Jefferies’ expectation of 36% and accelerating from the prior quarter. At the same time, Alphabet published a substantial increase in its capital expenditure forecast for FY26, setting a range of $175 billion to $185 billion, up sharply from FY25’s $91 billion.
In related personnel news noted alongside analyst coverage, Hayete Gallot from Google’s cloud unit is slated to become Microsoft’s new security chief, replacing Charlie Bell. Bell will move into a role focused on engineering quality and will continue close collaboration with Microsoft leadership.
Analysis - Truist’s upgrade underscores a broader market view that Alphabet’s AI initiatives are translating into tangible monetization gains in Search and meaningful acceleration in Cloud. The elevated FY26 capex outlook presents an execution task for management to balance investment with profitability and shareholder returns. Multiple broker actions that raised price targets or reiterated positive ratings reflect a consensus that AI and advertising trends are supporting Alphabet’s near-term growth profile.
Summary - Truist raised Alphabet’s target to $385 and maintained a Buy rating after a strong quarter showing growth in Search and Cloud driven in part by AI. Other firms have also increased their targets or reiterated favorable ratings amid significant revenue growth and a marked increase in capex guidance for FY26.
Key points
- Truist raised its price target to $385 from $350 and kept a Buy rating; Alphabet trades near $349 and is up 74.75% over the past year.
- Alphabet reported 13.4% year-over-year revenue growth, totaling $385.48 billion on a trailing twelve-month basis; Cloud grew 48% year-over-year, above Jefferies’ 36% estimate.
- FY26 capital expenditure guidance is $175-185 billion versus $91 billion in FY25; analysts say higher capex is acceptable if revenue and profitability continue to rise while supporting buybacks and dividends.
Risks and uncertainties
- Higher FY26 capital expenditure guidance increases execution risk for Alphabet’s investment program and could pressure near-term free cash flow if revenue or profitability growth slows - relevant to investors focused on capital-intensive technology sectors.
- Any slowdown in YouTube Ads revenue growth, noted by some analysts, could temper overall advertising income and affect media and digital advertising market dynamics.
- Reliance on AI to expand Search TAM and drive Cloud workloads creates dependency on continued adoption and effective monetization of AI features; a stall in adoption would affect both ad-supported and cloud services demand.