Google Earnings: Alphabet's Q2 Revenue Projected to Grow 11% with AI Advancements

Google parent Alphabet is poised to report its second-quarter earnings after the closing bell on Wednesday. Analysts generally maintain a bullish outlook on the stock, buoyed by expectations of robust revenue growth and advancements in artificial intelligence. A total of 19 analysts from Visible Alpha are covering Alphabet, with 15 recommending a "buy" or equivalent and four issuing "hold" ratings. The consensus price target of approximately $201 indicates a potential upside of nearly 5% from Tuesday’s levels, which stood around $191. Alphabet shares have slightly climbed about 1% thus far in 2025.

Jefferies analysts recently reaffirmed a price target of $210, citing the benefits that Google's Cloud division gains from strong enterprise demand and AI momentum. Wall Street broadly anticipates Google Cloud revenue to increase by 26% year-over-year, reaching $13.12 billion. Meanwhile, advertising revenue remains under scrutiny, as noted by Wedbush Securities analysts, with the emergence of generative AI challenging traditional search dynamics. Market consensus projects Google’s Search and Other division revenues to have grown around 9% to $52.92 billion.

Overall, analysts anticipate Alphabet to announce total revenue of approximately $93.98 billion, marking an 11% uplift from the previous year, alongside a net income of $26.64 billion, or $2.17 per share, contrasting with $23.62 billion, or $1.89 per share, from the prior year’s comparable period.

A notable antitrust decision is expected to unfold next month, as a federal judge deliberates on measures Google may need to adopt following proceedings that found the company maintained an illegal monopoly in search functionalities. Analysts from Cantor last week highlighted that the Department of Justice might push for Google to divest its Chrome browser due to the 2024 ruling. Cantor's analysts retained a "neutral" rating for Alphabet's stock, advocating the maintenance of this stance until further details around the antitrust conclusion are unveiled. The firm has adjusted its price target upward to $196, increased from $171, citing the competitive positioning of Google's AI endeavors.

Similarly, Bank of America modified its price target moving up to $210 from $200. Analysts expressed views on the antitrust judgment as an area of interest and uncertainty that Google is unable to provide definite answers for at this stage.

Alphabet's forthcoming earnings report has captivated attention with declared forecasting of adjusted earnings per share at $2.17 and revenue, excluding traffic acquisition costs, projected at $79.6 billion—representing a 11.6% expected growth year-over-year. Alphabet's integration of AI into its core search functions signals a strategic maneuver to counter platforms such as ChatGPT. During the previous earnings discussion, Alphabet officials noted the monetization of new AI features in Google Search aligned with traditional search methods, suggesting sustained advertising revenue prospects.

In the preceding quarter, Alphabet reported a 26% rise in earnings per share at $2.19 coupled with a 12% revenue increase totalling $90.2 billion. Analysts have demonstrated continued optimism over the projected performance, with consensus forecasts foreseeing a 15% increase in earnings per share to $2.18, driven by revenue expectations hovering between $93.9 billion and $94 billion.

As Alphabet steams ahead toward its earnings release, the company's robust fiscal health and strategies in AI technology are evident. Emerging as the first in the lineup of significant tech conglomerates, colloquially referred to as the "Magnificent 7," to report earnings this quarter demonstrates Alphabet's influential role within the tech sector and its capacity to set market anticipations.

Yet, Alphabet has encountered relative stagnation in stock performance over 2025, underperforming vis-a-vis other stocks of the "Magnificent 7" and the broader S&P 500 index. Analysts predict Alphabet's total revenue report standing at $93.98 billion, illustrating an 11% growth from a year prior, with net income documented at $26.64 billion, or $2.17 per share.

Anticipation swells around the earnings announcement as market participants are eager to discern the implications of Alphabet’s continued investment in AI on its financial standing and competitive leverage. The upcoming announcement is set to not only unveil crucial insights into the corporate health but also to elucidate Alphabet's strategic path amidst the swiftly transforming technology milieu.