With a market cap of $1.9 trillion, Alphabet Inc. (GOOGL) has evolved from a dominant online search provider into a diversified global technology leader, offering services in cloud computing, ad-based video and music streaming, autonomous vehicles through Waymo, and healthcare via Verily. It operates globally through Google Services, Google Cloud, and Other Bets segments, offering products like Search, YouTube, Google Cloud Platform, and Google Workspace.
The tech giant is expected to release its fiscal Q1 2025 earnings results on Thursday, Apr 24. Ahead of this event, analysts expect the company to report a profit of $2.02 per share, up 6.9% from $1.89 per share in the year-ago quarter. It has surpassed Wall Street’s bottom-line estimates in the last four quarters. In Q4 2024, GOOGL reported EPS of $2.15, beating the consensus EPS estimate by 1.4%.
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For fiscal 2025, analysts expect the Mountain View, California-based company to report EPS of $8.89, up 10.6% from $8.04 in fiscal 2024. Moreover, EPS is expected to grow 14.6% year-over-year to $10.19 in fiscal 2026.
Alphabet has risen 1.4% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 4.7% gain and the Communication Services Select Sector SPDR ETF Fund's (XLC) 13.5% increase over the same period.
Shares of Alphabet tumbled 7.3% after its Q4 2024 earnings release due to disappointing Google Cloud revenue, which grew slower than expected at 30%. Investors were also concerned about Alphabet’s aggressive $75 billion AI-related capital expenditure plan for 2025, far exceeding Wall Street's forecast. Concerns also grew over Alphabet’s continued heavy spending despite only modest revenue growth, with overall revenue at $96.5 billion, slightly missing the forecast. Additionally, competitive threats from China's low-cost AI developer DeepSeek raised concerns.
Overall, analysts' consensus view on Alphabet stock is bullish, with a "Strong Buy" rating. Out of 53 analysts covering the stock, 41 recommend a "Strong Buy," three suggest a "Moderate Buy," and nine propose a "Hold." This configuration is more bullish than three months ago, with 39 “Strong Buy” ratings on the stock.
As of writing, 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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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