Google (NASDAQ:GOOG) (NASDAQ:GOOGL) saw its fiscal 2025 and 2026 revenue estimates revised upward by Needham, citing strong performance in its cloud business.
Needham analysts Laura Martin and Dan Medina increased their Q4 2024 revenue forecast by 1% to $96.4 billion, reflecting 12% year-over-year growth. Google Cloud’s revenue estimate was raised 7% to $12.1 billion, nearly doubling its operating income forecast to $2.0 billion. The firm also upped its price target on Google stock from $210 to $225.
Beyond cloud, Google remains dominant in digital advertising, with its $260 billion in global ad revenue in 2024 accounting for over 40% of the market, according to eMarketer. Needham noted that even if the U.S. Department of Justice succeeds in its antitrust case, Google could be more valuable if broken up. Looking ahead, Needham raised Google’s fiscal 2025 revenue estimate by 1% to $390.2 billion and 2026 by 2% to $435.8 billion.
Google reports Q4 earnings on February 4, with consensus expecting EPS of $2.12 on revenue of $96.67 billion.
This article first appeared on GuruFocus.