Alphabet Inc. Set to Announce Q1 2025 Earnings Soon

With a market cap of $1.9 trillion, Alphabet Inc. (GOOGL) has transformed from a leading online search engine into a diversified global technology powerhouse. The company now offers services across cloud computing, ad-supported video and music streaming, autonomous vehicles through Waymo, and healthcare initiatives via Verily. Alphabet conducts its operations globally through three segments: Google Services, Google Cloud, and Other Bets, which include products such as Search, YouTube, Google Cloud Platform, and Google Workspace.

Upcoming Earnings Expectations

The tech giant is scheduled to release its fiscal Q1 2025 earnings results on Thursday, April 24. Analysts project that Alphabet will report a profit of $2.02 per share, reflecting a 6.9% increase from $1.89 per share during the same quarter last year. The company has exceeded Wall Street expectations for earnings per share (EPS) in the last four quarters. In Q4 2024, GOOGL reported an EPS of $2.15, surpassing the consensus estimate by 1.4%.

Fiscal Year Forecasts and Stock Performance

For the full fiscal year 2025, analysts anticipate that the Mountain View, California-based firm will report an EPS of $8.89, which is an increase of 10.6% from $8.04 in fiscal 2024. Additionally, EPS is expected to grow further to $10.19 in fiscal 2026, representing a year-over-year increase of 14.6%.

In terms of stock performance, Alphabet has seen a modest rise of 1.4% over the past 52 weeks, which lags behind the S&P 500 Index’s 4.7% gain and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 13.5% increase in the same period.

Market Reactions and Analyst Ratings

Shares of Alphabet dropped 7.3% following its Q4 2024 earnings announcement, primarily due to disappointing growth in Google Cloud, which increased by just 30%, lower than expectations. Investors expressed concern regarding Alphabet’s ambitious initiative for a $75 billion AI-related capital expenditure plan in 2025, significantly higher than Wall Street’s projections. Additionally, worries about Alphabet’s ongoing substantial expenses in relation to only modest revenue growth—totaling $96.5 billion and slightly falling short of forecasts—have contributed to the stock’s volatility. Competitive threats from low-cost AI developers like China’s DeepSeek further complicate the landscape.

Despite these challenges, the consensus among analysts is positive; Alphabet currently holds a “Strong Buy” rating. Out of 53 analysts tracking the stock, 41 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and nine propose a “Hold.” This outlook has improved from three months ago when only 39 ratings were “Strong Buy.”

As it stands, GOOGL is trading below the average analyst price target of $214.70.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.