Alphabet 2Q25 Earnings Preview

TradingKey - Alphabet will release its earnings for the second quarter of the fiscal 2025 on July 23rd after the bell.

● 2Q25 Earnings per share: $2.18 estimate vs. 2Q24 actual of $1.89 (+15% y/y)

● 2Q25 Revenue: $93.92bn estimate vs. 2Q24 actual of $84.74bn (+11% y/y)

Honestly, there is a lot to look for in GOOGL’s results this coming week.

Firstly, we have the ad business. The management will give a proper disclosure of the current state of the online ad business, considering GOOGL is the biggest online ad provider. We will see the effect of the tariffs, the economic slowdown. For the ad business, we should pay attention to YouTube, as the platform continues to gain market share in terms of TV time.

Secondly, we have the Cloud and AI story. As the competition with Amazon and Microsoft is quite intense, any wrong step in the cloud direction will be frowned by investors.

We are also curious about the progress of Gemini LLM versus GPT, and what will be the company’s response to the recent efforts by X with Grok and Meta’s huge AI hiring spree.

CapEx spending will be in the spotlight too, as we want to see if there is any tampering of the AI sentiment.

Other aspects that can move the stock are, of course, the autonomous taxi business, Waymo, as well as any updates on the recent anti-monopoly legal battles.

Conclusion

There is a lot being put on the table with these earnings and a lot can get wrong (or right), but what keeps us less uncomfortable about GOOGL is the attractive valuation.