Alphabet Inc. Prepares for Q1 2025 Earnings Amid Analyst Optimism

With a market capitalization of around $2 trillion, Alphabet Inc. (GOOG), headquartered in Mountain View, California, operates as a leading global technology company. Alphabet’s vast portfolio includes segments like Google Services, Google Cloud, and Other Bets, which deliver products and services spanning search, advertising, cloud computing, consumer devices, and healthcare. The tech giant is slated to announce its fiscal Q1 2025 earnings on Thursday, April 24.

Analysts anticipate that Alphabet will report a profit of $2.04 per share, marking a 7.9% increase from $1.89 per share in the same quarter last year. Over the last four quarters, Alphabet has consistently exceeded Wall Street’s bottom-line predictions. Notably, in Q4 2024, GOOG beat the consensus EPS estimate by 1.4%.

For fiscal 2024, projections indicate that the online advertising titan will report EPS of $8.87, which represents a 10.3% rise from $8.04 in fiscal 2023. Furthermore, EPS is expected to grow an impressive 14.7% year-over-year to reach $10.17 in fiscal 2026.

Over the past year, Alphabet’s shares have experienced a modest increase, lagging behind the S&P 500 Index, which has gained 2.8%, and the Communication Services Select Sector SPDR ETF Fund, which saw an 11.5% increase in the same timeframe.

Alphabet’s stock faced a 2.3% decline on March 18 when the company announced its largest-ever acquisition: a $32 billion all-cash deal for cloud security firm Wiz. This acquisition raised investors’ concerns about the potential overvaluation, especially considering Wiz only generates $500 million in annual recurring revenue. Additionally, the almost 40% increase in the acquisition offer from last year’s bid has caused unease among investors, particularly in light of substantial spending required for AI advancements.

Despite these concerns, analysts maintain a bullish outlook on Alphabet’s stock, with a prevailing “Strong Buy” consensus. Out of 53 analysts covering the stock, 41 endorse a “Strong Buy,” three recommend a “Moderate Buy,” and nine advise a “Hold.” Currently, GOOG trades below the average analyst price target of $214.70.

On the date of publication, Sohini Mondal did not hold positions, directly or indirectly, in any of the securities mentioned in this article. All information and data provided are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

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