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Alphabet GOOGL is set to report first-quarter 2025 results on April 24.
For first-quarter 2025, the Zacks Consensus Estimate for earnings is pegged at $2.01 per share, down by a penny over the past 30 days and indicates 6.35% year-over-year growth.
The consensus mark for fourth-quarter revenues is pegged at $75.53 billion, indicating growth of 111.75% from the year-ago quarter’s reported figure.
Alphabet has an impressive earnings surprise history. GOOGL’s earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.57%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Let’s see how things have shaped up for the upcoming announcement:
Factors to Note for GOOGL’s Q1 Results
Alphabet’s to-be-reported quarterly results are expected to benefit from solid momentum in search and cloud businesses. The search giant’s expanding Generative AI (Gen AI) capabilities is noteworthy. Alphabet has been cashing in on the increasing demand for Large Language Models (LLMs) with Gemini. Vertex usage increased 20 times in 2024, with strong developer adoption of Gemini Flash, Gemini 2.0, Imagen 3 and Veo, a trend is expected to have continued in the to-be-reported quarter.
The integration of Gen AI technology into the search engine has been benefiting Google Search. LLMs, coupled with multi-search and visual exploration features, are continuously improving the search results. AI-powered Circle to Search is now available on more than 150 million Android devices, with people using it to shop, translate text, and learn more about the world around them. Circle to Search is driving additional Search and is gaining popularity among younger users.
Alphabet has been rapidly growing in the booming cloud computing market. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against Amazon’s AMZN cloud arm, Amazon Web Services, and Microsoft’s MSFT Azure. The solid adoption of the Google Cloud Platform and Google Workspace is expected to have driven growth in the Google Cloud segment.
However, GOOGL is suffering from a lack of capacity, and until new capacity comes online in 2025, cloud revenues are expected to see increased variability. This is expected to have hurt Alphabet’s Google Cloud revenues in the to-be-reported quarter.
GOOGL Shares Lag Sector, Industry
Alphabet’s shares have declined 22.1% year to date, outperforming the Zacks Internet Services industry and the Zacks Computer & Technology sector. Over the same timeframe, the sector and industry have dropped 18.6% and 17.2%, respectively.