Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Alphabet Inc.

GOOGL · Nasdaq · Technology

Fundamental quality

EXCELLENT

93

out of 100

Alphabet Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 38.1%) with wide margins (net margin 54.8%) and a business that keeps growing (17.6% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Alphabet is Google's parent company. The vast majority of its revenue comes from advertising —Google Search and YouTube— complemented by its cloud (Google Cloud) and long-term bets like Waymo (self-driving).

What will shape its future

  • Whether AI search (chatbots) threatens or reinforces its advertising business — its biggest risk and opportunity at once.
  • The growth of Google Cloud and its ability to compete with Azure and AWS.
  • Regulatory and antitrust pressure on its dominance in search and advertising.

Breakdown by area

I.Growth
95

EPS growth: 41.8% · Revenue growth: 17.6%

II.Profitability
95

Net margin: 54.8% · ROE: 38.1% · ROIC: 17.6%

III.Financial health
88

Net debt/EBITDA: 0.26x · FCF: 11.9%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 96%
ROEbeats 81%
Growthbeats 62%
Cash generationbeats 24%
Less debtbeats 61%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Alphabet Inc. strengths

  • Exceptional net margin (54.8%), high even for its sector: the business is clearly profitable.
  • Growing earnings per share (41.8% annualized).
  • Expanding margins: net margin has risen from 22% to 33% in recent years.
  • Reasonable return on capital: its ROE (38.1%) is inflated by buybacks, but ROIC —which strips that out— is 17.6%.

Alphabet Inc. risks and weaknesses

  • Its net debt has grown over the period.

Alphabet Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020182,52740,26942,843-10,147
2021257,63776,03367,012-5,505
2022282,83659,97260,010-6,567
2023307,39473,79569,495-11,178
2024350,018100,11872,764-11,584
2025402,836132,17073,26617,835

Between 2020 and 2025, revenue went from $182,527M to $402,836M (+121%) and net income went from $40,269M to $132,170M (+228%). Meanwhile, its margins have widened (from 22% to 33%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+23.1%
  • Net income+178.6%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score9293
  • Net margin37.9%54.8%
  • ROE33.5%38.1%
  • FCF margin15.2%11.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.83

per share, yearly

7.6% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Alphabet Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Alphabet Inc. a good company to invest in?

In terms of business quality, Alphabet Inc. scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Alphabet Inc. a profitable company?

Very. Alphabet Inc. shows a net margin of 54.8% and an ROE of 38.1%, typical of a highly profitable business.

Does Alphabet Inc. have a lot of debt?

Not particularly. Its net debt is 0.26 times its EBITDA, a low level.

Is Alphabet Inc. growing?

Its revenue has grown 17.6% annualized in recent years and its earnings per share 41.8%, and without interruption since 2020.

Does Alphabet Inc. generate cash?

Yes. It converts about 11.9% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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