Alphabet Inc (NASDAQ:GOOG) shares are rallying on Thursday after the company delivered a strong earnings beat and raised its quarterly dividend.
- Alphabet stock is at critical resistance. Why is GOOG stock breaking out?
Strong Q1 And Cloud Momentum
Alphabet reported first‑quarter earnings of $5.11 per share, nearly doubling the $2.62 analysts were expecting. Revenue also came in ahead of expectations at $109.9 billion, up sharply from $90.23 billion a year ago. The company also increased its quarterly dividend by 5% to 22 cents per share.
The quarterly update included Google Services revenue growth of 16% to $89.6 billion and Google Cloud revenue growth of 63% to $20 billion, while operating income rose 30% and operating margin expanded to 36.1%.
CEO Sundar Pichai highlighted 350 million paid subscriptions led by YouTube and Google One, 40% quarter-on-quarter growth in Gemini Enterprise paid monthly active users and Waymo surpassing 500,000 fully autonomous rides per week.
“2026 is off to a terrific start. Our AI investments and full stack approach are lighting up every part of the business,” Pichai said.
Following the company’s quarterly results, Scotiabank analyst Nat Schindler maintained a Sector Outperform rating and raised the price target from $400 to $450. Rosenblatt’s Barton Crockett maintained a Neutral rating and raised the price target from $357 to $393.
When Breadth Is This Strong, Momentum Takes Over
Alphabet is pressing into fresh highs, trading above the prior 52-week high of $353.40, an important tell that buyers still control the longer-term trend. The stock is also stretched in a way momentum traders tend to love and risk managers tend to watch closely: it's trading 14.4% above its 20-day simple moving average and 17.9% above its 100-day SMA, a clean alignment that signals strong short- and intermediate-term trend strength.
The flip side of "clean" is "crowded." The RSI sits at 71.83, which is overbought territory, often the hallmark of a hot run where upside pressure has been strong enough that pullbacks can arrive quickly if the tape cools.
Still, the broader setup remains supportive: the 50-day SMA is above the 200-day SMA, a golden-cross backdrop that began in July 2025, and the last 12 months have delivered a 131.74% gain. In other words, the market has been rewarding duration, and Alphabet has been a willing participant.
Support is the level that matters when momentum finally exhales. The key support flagged is $319.50, an area where buyers previously showed up to slow declines.
GOOG Shares Are Soaring
GOOG Price Action: Alphabet shares were up 7.57% at $373.61 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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