Alphabet’s second-quarter 2025 results, set to be released on July 23, are expected to benefit from strong momentum in Search, Cloud, and advertising businesses. In the first quarter, Google advertising revenues rose 8.5% year over year to $66.885 billion, with Search and other revenues growing 9.8% to $50.702 billion. YouTube’s advertising revenues improved 10.3% to $8.972 billion, and Google Cloud revenues increased 28.1% to $12.26 billion. The Zacks Consensus Estimate for advertising revenues is $69.023 billion, indicating 6.8% growth over the year-ago quarter.
Alphabet has a history of surpassing earnings expectations, with an average surprise of 14.64% in the past four quarters. The company’s AI integration into search, including features like Gen AI and AI Mode, has driven increased usage and engagement with Google Search. The AI push is expected to boost Alphabet’s Search business, which faces competition from Microsoft Bing, YANDEX, Yahoo!, DuckDuckGo, and Baidu. Google currently holds a market share of 89.54% in the search engine market.
In the cloud-computing market, Alphabet’s Google Cloud is the third-largest provider, competing against Microsoft Azure and Amazon Web Services. Google Cloud’s collaboration with NVIDIA has been fruitful, with offerings like the Vera Rubin GPUs and advanced tools like Agent Development Kit and Agent Designer. The Zacks Consensus Estimate for Cloud revenues is $13.04 billion, indicating 26% growth year over year. Alphabet currently holds a Zacks Rank #3 (Hold).
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Read more at Nasdaq: Alphabet to Report Q2 Earnings: What’s in Store for the Stock?