Alphabet Inc. ($GOOGL) has once again captured the attention of Wall Street after delivering a blowout Q2 2025 earnings report, with standout performance in Google Cloud, search, and AI-driven monetization. In response, no fewer than 13 major investment firms have raised their price targets on the stock, signaling a renewed bullish consensus around Alphabet’s long-term value proposition.

Widespread Analyst Upgrades Reflect Strong Conviction

Over the past 24 hours, top institutions including Barclays, Morgan Stanley, Citi, and BMO Capital have all revised their price targets upward — with new estimates ranging from $210 to $235 per share. Notably:

• Barclays: Raised its target to $235 (from $220), maintaining an Overweight rating
• BMO Capital: Increased to $225 (from $208), with Outperform
• KeyBanc: Upgraded to $230 (from $215), Overweight
• Citi: Raised to $225 (from $203), Buy
• RBC Capital and Wedbush both updated to $220–225, citing accelerating cloud and AI monetization
• Bank of America, Stifel, and Morgan Stanley also joined in, bringing the average target to roughly $222

These adjustments reflect a near-universal interpretation of the earnings release as a turning point, particularly for Alphabet’s cloud ambitions and AI strategy.

Google Cloud: The Undisputed Star of the Quarter

The standout performance came from Google Cloud, which posted revenue of $13.6 billion, marking a year-over-year growth of 32%, well above the 26.5% expected by analysts. Operating income in the segment surged to $2.83 billion, demonstrating rapid profitability expansion after years of break-even performance.

This surge is being driven by explosive demand for AI workloads. The company reported that the number of cloud deals over $250 million has doubled year-over-year, and even disclosed that several deals exceeded $1 billion in H1 2025 — matching the number of billion-dollar deals signed in all of 2024. Alphabet’s proprietary Gemini AI model is now embedded across its entire cloud stack and productivity suite, signaling deep enterprise integration.

Search, AI, and Advertising Engines Keep Momentum Strong

Alphabet’s core Search business also exceeded expectations, reporting $54.2 billion in revenue, supported by strong user engagement with new AI-powered features like AI Overviews and AI Mode. These tools, introduced in Search Generative Experience (SGE), are driving increased query depth and monetizable user sessions.

In parallel, YouTube Ads revenue climbed 13% year-over-year, reflecting resilience in digital ad spending and the platform’s adaptability to new consumption trends — especially connected TV viewership and short-form video (Shorts).

Financial Summary: Top-Line Strength and Shareholder Returns

At the corporate level, Alphabet’s total revenue rose 14% YoY to $96.4 billion, beating Wall Street estimates. The company reported adjusted EPS of $2.31, a 22% increase from last year and a clear signal of improved cost discipline.

Alphabet also reaffirmed its strong capital return program:

• Share repurchase authorization of $70 billion, announced earlier this year, is ongoing
• Quarterly dividend raised by 5% to $0.21 per share, enhancing long-term shareholder yield

Capex Acceleration Signals Long-Term Infrastructure Investment

A particularly notable detail in the earnings call was Alphabet’s increased capital expenditure forecast for 2025 — revised upward to $85 billion, with further increases expected in 2026. This reflects an aggressive investment stance in technical infrastructure, primarily data centers and AI compute servers, to support long-term scalability in Google Cloud and AI services.

Market Response and Valuation Perspective

Following the report, Alphabet stock jumped in after-hours trading, with trading volumes more than tripling. The stock remains one of the most heavily accumulated large-caps by institutional players, including Vanguard Growth and QQQ.

Even after the rally, $GOOGL trades at a forward P/E multiple that remains attractive relative to its growth rate, especially considering the operational leverage embedded in its cloud and AI infrastructure.

Conclusion: Alphabet Is Back in Leadership Mode

With record-breaking cloud performance, AI-led innovation across core businesses, and firm shareholder capital returns, Alphabet is reasserting itself as one of the most strategically positioned tech companies globally. The convergence of cloud scale, AI deployment, and monetization strength makes $GOOGL a renewed conviction play for long-term investors.

Wall Street’s sweeping price target revisions aren’t just a reaction to a good quarter — they represent a structural shift in how the market values Alphabet’s next phase. The message is clear: Alphabet isn’t playing catch-up anymore. It’s leading.