ClearBridge Sees Strong Growth Trajectory in Alphabet Amid AI-Driven Revenue Expansion

ClearBridge Large Cap Growth Strategy reaffirms its positive outlook on Alphabet (GOOG), citing robust revenue growth and expanding margins driven by AI integration across Google's core businesses. The firm highlights a projected 18% year-over-year revenue increase in 2026, underpinned by strong performance in cloud computing and advertising.

ClearBridge Large Cap Growth Strategy has maintained a favorable view of Alphabet (GOOG), emphasizing the company’s strategic advantages in artificial intelligence and its continued dominance in digital advertising. The firm notes that Alphabet's Q4 2025 revenue reached $78.9 billion, exceeding expectations by 5.3%, with operating income growing 21% year-over-year to $25.4 billion. These results reflect sustained demand across Google Search, YouTube, and Google Cloud, which reported a 35% YoY growth in revenue during the quarter. The investment team attributes Alphabet’s resilience to its significant R&D investment in AI infrastructure, including the deployment of custom silicon and advanced large language models. Google Cloud’s revenue, now at $11.2 billion in Q4, marks a 35% increase from the same period in 2024, signaling deeper enterprise adoption. ClearBridge forecasts that AI-enhanced advertising tools will boost Google’s ad revenue by 19% in 2026, contributing to an overall revenue projection of $324 billion for the fiscal year. Market analysts note that Alphabet’s share repurchase program, totaling $35 billion in 2025, has supported earnings per share growth despite increasing capital expenditures. The firm’s free cash flow reached $76.4 billion in 2025, enabling continued reinvestment into AI and infrastructure. ClearBridge believes Alphabet’s diversified revenue base and disciplined capital allocation position it for long-term outperformance in a competitive tech landscape.