Alphabet (GOOGL) Stock Surpasses Apple and Microsoft to Be America’s Most Profitable Firm

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TLDR

  • Alphabet (GOOGL) has overtaken Apple and Microsoft to become the most profitable company in America
  • Google Cloud’s revenue soared 48% year-on-year in Q4, propelled by AI enterprise demand
  • Full-year 2025 revenue crossed $400 billion for the first time, with net income rising 30% to $34.5 billion
  • Mizuho reaffirmed an Outperform rating with a $410 price target on February 18, 2026
  • GOOGL stock has risen over 60% in the past year, making it the top-performing stock among the Magnificent Seven

Alphabet has stealthily edged past Apple and Microsoft to assume the title of America’s most profitable company — and the figures confirm this.

GOOGL Stock Card

The company released Q4 2025 earnings on February 4, with consolidated revenue for the quarter amounting to $113.8 billion. Full-year 2025 revenue marked the first time it exceeded $400 billion in the company’s history.

Net income increased by 30% to $34.5 billion, driven by robust performance in Search and Cloud.

Cloud was the star performer. Revenue spiked 48% year-on-year to $17.7 billion in Q4, fueled by growing demand from enterprises expanding AI infrastructure.

The Cloud backlog now stands at $240 billion, indicating that growth has potential to continue.

Gemini, Alphabet’s AI platform, is also gaining momentum. Paid seats among enterprise customers reached 8 million, spanning over 2,800 companies. The consumer-oriented Gemini app has over 750 million monthly active users.

Google Cloud: From Money-Loser to Growth Driver

Cloud wasn’t always a profit center. It took approximately 15 years to become profitable, but it’s now one of Alphabet’s most crucial earnings contributors.

That shift is significant. Alphabet can now fund new initiatives from a position of strength instead of spending money indiscriminately.

Waymo, the self-driving car division, is one such bet. It’s operating in several U.S. cities and positioning itself to compete in the ride-hailing market.

For 2026, Alphabet intends to spend between $175 billion and $185 billion on capital expenditures — a deliberate increase in investment.

That’s a substantial figure, but the company has the cash flow to support it.

GOOGL Stock Leads the Magnificent Seven

GOOGL has risen more than 60% in the past year, making it the top-performing stock among the Magnificent Seven during that period.

Only [another stock] comes close to matching that performance relative to the S&P 500. The rest of the group has lagged, burdened by slower revenue growth and capital expenditure concerns.

Over five years, GOOGL’s value has nearly tripled.

The stock has a 0.28% dividend yield — modest, but Alphabet’s financial position allows for potential increases in the future.

On February 18, 2026, Mizuho Securities analyst Lloyd Walmsley reaffirmed an Outperform rating on GOOGL with a $410 price target. That target was increased earlier in the month, on February 5, from $400.

Mizuho’s stance reflects broader analyst confidence following the Q4 earnings beat and the company’s record revenue milestone.