Alphabet Q2 2025 earnings preview: AI investments and legal challenges in focus

When is Alphabet reporting?

Google's parent company Alphabet is set to release its quarterly earnings on Friday, 25 April 2025 at 4.30am Singapore time (SGT) amid growing AI investments and ongoing legal challenges. Here's what investors should watch for in the tech giant's upcoming financial results.

Financial expectations

Google parent Alphabet expected to show 11% revenue growth despite market headwinds.

• Revenue: $89.2 billion, representing an 11% year-over-year increase
• Net income: Approximately $24.7 billion
• Earnings per share (EPS): Between $2.01 and $2.04, up from $1.89 in the same period last year

These projections come despite broader market challenges and Alphabet's stock decline of nearly 20% year-to-date in 2025.

Wall Street remains bullish

The majority of analysts maintain positive ratings on Alphabet shares despite recent price weakness, reflecting confidence in the company's fundamental business strength and long-term growth prospects in AI and cloud computing.

Alphabet price indicators and buy/sell signals

Navigating legal challenges and investments in AI

• Gemini AI and Cloud services driving Google's revenue growth strategy

Alphabet's growth trajectory is significantly powered by its advancements in artificial intelligence, particularly within its core platforms, Google Search and YouTube. The widespread adoption of AI tools, notably Google's Gemini large language model, has bolstered the company's competitive position in the rapidly evolving AI market. Alongside AI, Google Cloud and YouTube continue to be substantial contributors to the company's overall revenue expansion.

• Antitrust ruling poses potential restructuring risks for Google's Ad business

The tech giant is navigating considerable regulatory challenges following a U.S. District Court ruling that found Google illegally maintained monopolies in online advertising. This verdict could lead to structural changes, including the potential spin-off of portions of its advertising network. Despite these legal challenges, analysts anticipate that Alphabet's core businesses will remain robust.

• Google investing $75 billion in AI infrastructure and future technologies

Alphabet has announced plans to invest approximately $75 billion in capital expenditures through 2025, focusing significantly on AI development and infrastructure improvements. This substantial financial commitment underscores the company's long-term growth strategy and its determination to maintain leadership in the technology sector.

• Market shows measured optimism ahead of Google's earnings announcement

Despite a 19-20% decline in Alphabet shares so far in 2025, the implied volatility surrounding the upcoming earnings report remains relatively low. This indicates a level of market confidence in the company's fundamental strength and its ability to navigate current challenges. Investors will closely monitor management's commentary on future growth prospects and any potential impacts from recent antitrust rulings during the earnings call.

Key takeaways for investors before Alphabet's results

Alphabet's upcoming earnings report is expected to reflect solid revenue and earnings growth, driven primarily by AI innovation and continued strength in its core businesses. While legal headwinds and market volatility present challenges, the company's strategic investments in emerging technologies and strong analyst support suggest potential for recovery. The earnings call will be particularly significant as investors seek clarity on how Alphabet plans to address regulatory concerns while maintaining its growth momentum in an increasingly competitive tech landscape.

Alphabet Inc A technical analysis

The stock price of Alphabet remains in a broad, range-bound trading environment. The recent price reversal from the $147 support level suggests that $160 could be the initial resistance target. Traders will focus on this $160 level for future direction as results are released.

A close above this level would indicate a further target of $172, while a stop loss might be considered around the midpoint of the $147 to $160 range. If the price fails to break the $160 level and instead forms a bearish reversal, a retest of the $147 level might be favored. In this scenario, a close above the reversal high could be used as a stop loss consideration.

Alphabet daily chart