JPMorgan Bullish on ‘MAG7’ Tech Group, Expects Strong Revenue Growth for Internet Sector in 2026

Company Overview - Alphabet Inc. operates through various segments including Google Services, Google Cloud, and Other Bets, providing products and platforms across multiple regions including the US, Europe, and Asia-Pacific [4] Financial Performance - In Q3 2025, Alphabet achieved its first-ever $100 billion quarter, with total revenue reaching $102.3 billion, representing a 16% year-over-year increase [2] - The company's net income rose by 33% to $35 billion, resulting in an earnings per share (EPS) of $2.87, which is a 35% increase year-over-year [2] Revenue Growth Drivers - The growth was primarily driven by core segments and investments in AI, with Google Services revenue increasing by 14% year-over-year to $87.1 billion [3] - Google Cloud emerged as the fastest-growing segment, generating revenue of $15.2 billion, marking a 34% increase [3] - YouTube Advertising revenue also experienced solid growth, up 15% year-over-year to $10.3 billion, supported by a dual monetization strategy involving both advertising and subscription services [3] Market Outlook - JPMorgan has raised its price target for Alphabet to $385 from $340, maintaining an Overweight rating, and expresses a positive outlook on the MAG7 tech group as it anticipates strong revenue growth for the internet sector moving into 2026 [1][3]