Alphabet Q2 2025 Earnings Preview | Google Stock Outlook | AI Growth Strategy

Alphabet Q2 2025 earnings preview: What investors need to know before Google parent reports

Google's parent company Alphabet is set to release its quarterly earnings on the 24th of April 2025 amid growing AI investments and ongoing legal challenges. Here's what investors should watch for in the tech giant's upcoming financial results.

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

Alphabet Inc. is projected to report approximately $89.2 billion in revenue for the quarter, representing an 11% year-over-year increase. Net income is expected to reach around $24.7 billion, with earnings per share (EPS) estimates ranging 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 on Google stock with significant upside potential

Gemini AI and cloud services driving Google's revenue growth strategy

Alphabet's growth trajectory continues to be powered by significant AI innovations, particularly within its core Google Search and YouTube platforms. The widespread adoption of AI tools, especially Google's Gemini large language model, has strengthened the company's competitive position in the rapidly evolving AI market. Additionally, Google Cloud and YouTube remain substantial contributors to the company's overall revenue expansion.

Antitrust ruling poses potential restructuring risks for Google's ad business

The tech giant faces considerable regulatory headwinds following a recent U.S. District Court ruling that found Google illegally maintained monopolies in online advertising. This verdict could potentially force structural changes, including the possibility of spinning off portions of its advertising network. However, analysts expect Alphabet's core businesses to remain robust despite these legal challenges.

Google investing $75 billion in AI infrastructure and future technologies

Alphabet has outlined plans to invest approximately $75 billion in capital expenditures throughout 2025, with a significant focus on AI development and infrastructure improvements. This substantial financial commitment underscores the company's long-term growth strategy and determination to maintain its leadership position in the technology sector.

Market shows measured optimism ahead of Google's earnings announcement

Despite Alphabet shares declining 19-20% so far in 2025, implied volatility surrounding the upcoming earnings report remains relatively low. This suggests a certain level of market confidence in the company's fundamental strength and ability to navigate current challenges. Investors will pay close attention to management's commentary regarding future growth prospects and any potential impact from the recent antitrust rulings during the earnings call.

Key takeaways for Google investors before Alphabet's quarterly results

Alphabet's upcoming earnings report is expected to show 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 indicate 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 view

The stock price of Alphabet remains in a broad range bound trading environment. The recent price reversal off the 147 support level suggests 160 to be the initial resistance target.

Traders will look to this (160) level into the results for future direction. A close above this level would suggest 172 to be a further target, while a stop loss might be considered around the mid-point of the 147 to 160 range. Should the price instead fail to break the 160 level and instead form a bearish price reversal off this level, a retest of the 147 level might be favoured. In this scenario a close above the reversal high might be used as a stop loss consideration.