Alphabet expected to report increase in Q2 earnings, but faces antitrust concerns

From Yahoo Finance: 2025-07-01 07:07:00

Alphabet Inc. (GOOGL) is a tech conglomerate with a market cap of $2.2 trillion. Expected to announce Q2 earnings on Jul. 22, analysts project a profit of $2.12 per share, a 12.2% increase from last year. GOOGL is anticipated to report a full-year EPS of $9.53, up 18.5% from fiscal 2024.

Despite underperforming the S&P 500 and XLC ETF, GOOGL’s stock is affected by potential antitrust actions from the U.S. government, threatening to sell assets like the Chrome browser. The rise of generative AI poses a threat, but Google’s integration of AI into its search business may retain users. Google may have to let British users choose rival search services per the U.K. antitrust watchdog.

In Q1, GOOGL reported a 12% revenue increase to $90.2 billion, with an EPS of $2.81 (a 48.7% rise from last year). Analysts hold a bullish consensus on GOOGL stock, with 41 advising a “Strong Buy,” four suggesting a “Moderate Buy,” and eight recommending a “Hold.” The average price target is $200.74, indicating a potential 13.9% upside.

Read more: What to Expect From Alphabet’s Report