Alphabet Stock Earnings: Analysts Optimistic Amid Antitrust Concerns and AI-Driven Growth

Google parent Alphabet (GOOGL) is poised to report its second-quarter earnings, with a prevailing sentiment of optimism from analysts tempered by concerns about an impending antitrust decision. Out of the 19 analysts tracking Alphabet, Visible Alpha indicates that 15 have assigned a "buy" rating or its equivalent, while four have issued "hold" ratings. The consensus price target is approximately $201, suggesting a potential upside of around 5% from Tuesday's intraday level, which stood slightly above $191. Alphabet's shares have observed a modest rise of around 1% for this year so far.

Jefferies analysts maintain a price target of $210, banking on robust enterprise demand and AI advancements to drive growth in Google's Cloud division. Wall Street anticipates a 26% year-over-year increase in Google Cloud's revenue, reaching $13.12 billion. However, advertising revenue remains under scrutiny, with Wedbush Securities analysts noting that the emergence of generative AI might challenge traditional search methodologies. Analysts forecast that Google's Search and Other division will report a revenue increase of approximately 9%, amounting to $52.92 billion.

In terms of overall financial performance, analysts predict Alphabet will announce total revenue of $93.98 billion, reflecting a 11% growth from the previous year. Net income is expected to be $26.64 billion, or $2.17 per share, an improvement from the prior year’s figures of $23.62 billion, or $1.89 per share.

The looming antitrust decision captures significant attention. A federal judge is anticipated to deliver a ruling soon regarding Google's efforts to maintain a monopoly in search—a year after the company was identified as having engaged in such conduct. The Department of Justice has proposed that Google should be compelled to divest its Chrome browser as part of the 2024 ruling. Cantor analysts have upheld a "neutral" stance on Alphabet's stock, citing a wait-and-see approach until there is clearer information regarding the antitrust situation. They have adjusted their price target to $196 from $171, appreciating Google's strong position in the AI landscape.

Simultaneously, Bank of America has increased its price target for Alphabet to $210 from the previous $200. Analysts emphasize that the implications of the antitrust ruling remain a critical point of inquiry, with Alphabet presently unable to provide definitive answers.

The information has been updated as of July 22, 2025, to incorporate the latest analyst estimates and share price data, reflecting an evolving landscape as Alphabet approaches its earnings announcement.