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Is GOOGL (Alphabet Inc.) Halal or Haram?

NASDAQ Global SelectTechnologyInternet Content & Information$3.77T2026-02-24
GOOGL is Halal4/4 screens passed

Alphabet Inc. comfortably passes all AAOIFI financial screens, demonstrating exceptional financial health with a negligible debt-to-market cap ratio of just 1.9%. Furthermore, its interest income constitutes only 0.2 7% of total revenue, well below the 5% threshold, making it a robust choice for Shariah-conscious portfolios.

Shariah Screening Details for GOOGL

Business Activity

Permissible

Alphabet's core revenue from digital advertising , cloud computing, and hardware sales is permissible, passing the business activity screen as its primary operations do not violate Islamic principles.

Debt / Market Cap

1.91%

Debt: $72.03BThreshold: ≤33%

Interest Income

0.27%

Interest: $1.08BThreshold: ≤5%

Cash & Securities

3.37%

Cash: $126.84BThreshold: ≤33%

About Alphabet Inc. (GOOGL)

Alphabet Inc. is the holding company for Google, the world's dominant search engine , and a vast ecosystem of digital services including YouTube, Android, and Google Cloud. Beyond search and advertising, which generate the bulk of its revenue, the company produces hardware like Pixel phones and Fitbit wearables, and explores futuristic ventures through its 'Other Bets' segment . It stands as a titan in the Internet Content & Information industry, influencing how billions of people access information daily.

For Muslim investors, GOOGL is classified as Halal under AAOIFI standards, having passed all four critical screening metrics . This compliance is significant because it allows investors to participate in the growth of a major tech leader without compromising Islamic principles. The company 's business activities are largely permissible, with the vast majority of income derived from services and sales rather than impermissible interest or prohibited goods.

Financially, Alphabet is exceptionally clean from a Shariah perspective, boasting a debt- to-market cap ratio of only 1.9%, which is far below the 33% limit. Similarly, its cash and interest-bearing securities account for just 3.4% of its market cap, and interest income is a tiny fraction of its massive revenue stream. These low leverage ratios indicate a company that relies on its own cash flow rather than heavy borrowing , aligning well with Islamic preference for asset-backed, low-debt businesses.

While the stock is compliant , investors should remain aware that a small portion of revenue comes from YouTube ads that may occasionally feature non-compliant content, though this is generally considered negligible within the broader context. As with all tech giants, it is wise to monitor future acquisitions or shifts in treasury management to ensure interest income remains below the 5% threshold.

CEO

Sundar Pichai

Employees

185,719

IPO Date

2004-08-19

Headquarters

Mountain View, CA, US

GOOGL Key Financial Statistics

Revenue

$402.96B

Net Income

$132.17B

EPS (Diluted)

$10.81

Stock Price

311.49

Beta

1.09

52-Week Range

140.53-349

Total Debt

$72.03B

Total Equity

$415.26B

Current Ratio

2.01

GOOGL Financial Health & Profitability

Profit Margins

Gross Margin59.7%
Operating Margin32.1%
Net Margin32.8%

Revenue Growth (YoY)

+15.1%

Prior year: $350.02B

Net Debt

$41.33B

Cash: $30.71B — Debt: $72.03B

R&D Spending

$61.09B

% of Revenue

15.2%

Frequently Asked Questions About GOOGL

Is GOOGL (Alphabet Inc.) stock halal to invest in?
Based on our AAOIFI-standard shariah screening, GOOGL is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (1.91% vs ≤33% threshold), interest income ratio (0.27% vs ≤5% threshold), and cash & securities ratio (3.37% vs ≤33% threshold).
What does Alphabet Inc. do?
Alphabet Inc. is the holding company for Google, the world's dominant search engine , and a vast ecosystem of digital services including YouTube, Android, and Google Cloud. Beyond search and advertising, which generate the bulk of its revenue, the company produces hardware like Pixel phones and Fitbit wearables, and explores futuristic ventures through its 'Other Bets' segment . It stands as a titan in the Internet Content & Information industry, influencing how billions of people access information daily. For Muslim investors, GOOGL is classified as Halal under AAOIFI standards, having passed all four critical screening metrics . This compliance is significant because it allows investors to participate in the growth of a major tech leader without compromising Islamic principles. The company 's business activities are largely permissible, with the vast majority of income derived from services and sales rather than impermissible interest or prohibited goods. Financially, Alphabet is exceptionally clean from a Shariah perspective, boasting a debt- to-market cap ratio of only 1.9%, which is far below the 33% limit. Similarly, its cash and interest-bearing securities account for just 3.4% of its market cap, and interest income is a tiny fraction of its massive revenue stream. These low leverage ratios indicate a company that relies on its own cash flow rather than heavy borrowing , aligning well with Islamic preference for asset-backed, low-debt businesses. While the stock is compliant , investors should remain aware that a small portion of revenue comes from YouTube ads that may occasionally feature non-compliant content, though this is generally considered negligible within the broader context. As with all tech giants, it is wise to monitor future acquisitions or shifts in treasury management to ensure interest income remains below the 5% threshold. Alphabet Inc. operates in the Technology sector under the Internet Content & Information industry and is headquartered in Mountain View, CA, US. The company is led by CEO Sundar Pichai and employs approximately 185,719 people.
What screening criteria were used for GOOGL?
GOOGL was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. GOOGL passed 4 of these 4 screens.
Does GOOGL require income purification?
Although GOOGL passes all shariah screens, it does earn $1.08B in interest income (0.27% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.27 to purify the income.
When was GOOGL last screened?
GOOGL was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.

Disclaimer

This shariah compliance assessment for GOOGL (Alphabet Inc.) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-02-24.

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