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A Big Quarter for Alphabet
Alphabet shares are up 15% in the past month as the narrative on the company shifts.
Whereas most discussion on Alphabet months ago centered around the disruption of their search business, Wall Street has been warming up to Alphabet recently.
For one, EPS revisions have been going up as positive ‘channel checks’ on search reveal it’s proving more defensible against the growth of chatbots like ChatGPT in the near term.
In the past 90 days, there have been 26 positive EPS revisions while only 10 were negative.
Another factor is that other parts of Alphabet’s business like Waymo, Google Cloud, and YouTube have all been performing at a high level.
In addition, the company is gaining traction in usage of its own Gemini suite of AI products.
The billion-dollar question tonight will be whether Google releases good enough earnings to continue turning its narrative around.
Revenue By Segment Heading Into Q2
Alphabet’s strength lies in its breadth. This table breaks down Q1 revenue by segment, revealing where the real growth is coming from — whether it’s Search, YouTube, Cloud, or Other Bets.
Cloud returned to high-20s % growth, while Search and YouTube showed strength across both brand and performance formats
| Segment | Revenue | YoY Growth |
|---|---|---|
| Google Search | $46.2B | +13% |
| YouTube Ads | $9.5B | +10% |
| Google Cloud | $11.7B | +28% |
| Google Other | $8.9B | +9% |
| Other Bets | $425M | -2% |
How Did Alphabet’s Stock Perform After Past Earnings
GOOG has posted four consecutive beats with consistently strong multi-day gains — investor confidence is high heading into Q2.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q1 2025 | +39.7% | +10.2% | +13.5% | +15.1% |
| Q4 2024 | +0.9% | +6.1% | +7.8% | +9.0% |
| Q3 2024 | +1.1% | +5.3% | +6.7% | +6.0% |
| Q2 2024 | +2.5% | +5.9% | +6.3% | +6.9% |
Alphabet (Nasdaq:GOOG) reports Q2 2025 earnings after the market closes tonight. The Street expects strong double-digit top-line growth driven by continued strength in Search, YouTube, and AI-tailwind monetization through Cloud and Gemini. The Q1 call highlighted broad momentum across ad formats and product surfaces, especially YouTube Shorts and CTV, while also pointing to operating leverage across key businesses. With shares near all-time highs, this quarter’s focus will be on evidence of durable AI monetization and whether Google Cloud’s recent reacceleration can continue.
What to Expect
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Revenue: $94.02 billion
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EPS (Normalized): $2.20
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FY 2025 Revenue: $388.85 billion
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FY 2025 EPS: $9.66
Consensus implies 11.1% YoY revenue growth and a 20.1% EPS increase, reflecting operating leverage and improving ad pricing across YouTube and Search
Key Areas to Watch Tonight
1. YouTube Monetization and Shorts
YouTube Shorts engagement rose 20% YoY in Q1, and for the first time, revenue per watch hour matched or exceeded traditional in-stream ads in key markets like the U.S. Management will likely offer updated monetization data and highlight new AI-powered ad products.
2. Cloud and Gemini Enterprise Adoption
Q1 showed strong growth in Cloud workloads and rising Gemini demand across Workspace and Vertex AI. Watch for comments on margin mix, enterprise penetration, and generative AI inference workloads driving utilization.
3. Advertising Demand and Brand vs. Performance Mix
YouTube ad revenue grew 10% YoY, led by direct response campaigns, and Google continues investing in AI-enhanced ad targeting. Investors want clarity on whether performance-led growth is sustainable or cyclical.
4. YouTube TV, Subscriptions, and NFL Sunday Ticket
Subscriptions remain a $50B+ annualized business. Management recently confirmed 125M subscribers across YouTube Premium and Music, and is testing new SKUs like “Premium Lite.” Commentary on engagement, churn, and cross-sell with Sunday Ticket will be key.
5. Multimodal AI Tools for Creators and Advertisers
YouTube is investing in creator-facing AI tools like DreamScreen and multi-language dubbing. On the advertiser side, tools like Demand Gen and auto-optimized Shorts creatives are driving double-digit improvements in ROI.
The post Live: Complete Alphabet (GOOG) Earnings Coverage appeared first on 24/7 Wall St..
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Author: Joel South
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