The year 2025 brought Alphabet exceptional success, which their current operations show that they will continue to maintain throughout the upcoming period as well. The stock price increased by 65% last year and it has now reached a 5% gain during the first part of 2026, while investors anticipate 4th February 2026 to be their season finale.
As Alphabet will announce its fourth-quarter financial results on this date, investors expect higher stock prices based on their growing anticipation of those financial figures. In order to support such a solid statement, we have three strong factors that make Alphabet stock highly appealing for investors before the company publishes its financial results.
Gemini is Pretty Much Everywhere
There was a time when the public viewed Gemini as a less powerful competition during the early months of its release. However, now it has entered the stage where it is leading, because it has achieved its goal of becoming one of the market leaders.
Alphabet has used its extensive resources to establish Gemini as a top AI solution that competes in the current market through its advanced AI capabilities, which includes more than just viral content or effective product demonstrations, and that is Google Search.
With Gemini-powered AI overviews being at the top of search results, this model is being used millions of times a day, which quietly collects feedback and improves at a pace that very few rivals can match.
The primary element that distinguishes Gemini from its competitors stems from its data capabilities. Through its deep incorporation with Google products, Gemini users can access their Gmail accounts, Photos platform and YouTube search history in order to create a highly customized AI experience.
A startup cannot achieve that goal through its imaginative ideas and its effective execution of specific tasks. Alphabet maintains a competitive advantage because its AI development requires more time, while its Gemini project currently produces no financial returns.
Google Cloud is Bringing Profit
Google Cloud handles operational tasks for its customers, which brings higher financial returns than its actual market presence. The AI boom has benefited Alphabet’s cloud business because companies now rent computing resources to develop and operate their artificial intelligence systems.
Alphabet invests substantial funds into data center construction, but its decision to lease those resources enables immediate revenue generation from artificial intelligence demand instead of future earnings.
Even the statistical data now shows evidence of that change. Google Cloud revenue for the third quarter increased by 34% year over year, while operating margins reached 24% after rising from 17%.
The result shows a major enhancement because it goes beyond what people usually consider to be a minor adjustment. Cloud services could develop into one of Alphabet’s main revenue sources if they maintain their current growth rate and improve their profit margins.
Advertising is Thriving
For Alphabet, Advertising today exists as a thriving business. Alphabet remains an advertising corporation at heart, which continues to operate its successful advertising business despite all the discussion about artificial intelligence, cloud computing, and advanced technologies.
The digital advertising industry continues to perform well because there has been no substantial change in how people purchase products between the third and fourth quarter of the year.
The business maintains stable operations, as Alphabet generates most of its revenue from advertisements. So, when the ad section succeeds, eventually it helps all other operations as well.
Wall Street expects Alphabet to post 15% revenue growth in Q4, but analysts predict that earnings will increase at a faster rate. Analysts predict earnings per share will increase from $2.15 last year to $2.66 this year, which represents a 24% increase.
The stock price for Alphabet could experience another increase if the company exceeds its performance predictions, which it typically accomplishes.
Bottom Line
Alphabet enters its earnings report with very strong operational advantages from its various business sectors. Gemini establishes its AI credibility, while Google Cloud demonstrates its ability to generate profits, and the traditional advertising division continues its operations.
The stock has the potential to increase by 5% or more if the fourth-quarter results show even a small positive surprise. The current situation shows that purchasing Alphabet shares before 4th February 2026 would be a strategic investment in a company, which operates at almost full capacity.
