Alphabet Inc. · GOOG · FY2025 Q1 · Calendar Q2 2025

Alphabet: AI and Cloud Demand Support Confident Outlook

The supplied analysis supports the view that Alphabet's AI product adoption, Cloud demand, YouTube activity and Waymo expansion can support continued growth, while advertising, infrastructure capacity, depreciation and generative-AI competition remain key tests.

Reported Before market openNASDAQCommunication Services $4120.39B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $2.04
EPS surprise — Reported versus consensus
Reported revenue — Consensus $89.21B
Revenue surprise — Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +2.4% Event window
SPY move +2.1% Same window
Abnormal move +0.3% Stock minus SPY
Volume 1.2× Versus trailing sessions
Subsequent drift +6.5% Up to 20 sessions
GOOGSPY benchmark

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What changed

The current analysis highlights continued AI-led growth, 28% Google Cloud growth, a $75 billion 2025 CapEx projection, an intent to acquire Wiz, and further Waymo expansion.

Guidance delta

Maintained.

Key takeaways

  • AI-driven products including Gemini, AI Overviews and AI Mode were identified as growth drivers across core businesses.
  • Google Cloud revenue grew 28% with strong demand for AI infrastructure and Vertex AI models.
  • YouTube subscription services and advertising remained robust in the supplied analysis.
  • 2025 capital expenditure was projected at $75 billion, supporting infrastructure growth while increasing depreciation pressure.
  • Waymo continued expanding paid ride-hailing services and partnerships in new U.S. cities.

Management priorities

  • Launch additional Gemini models and expand AI Mode.
  • Scale AI Overviews to new languages and countries.
  • Deploy Waymo paid services in Atlanta and continue partnerships with Uber and Moove.
  • Introduce enterprise AI-agent tools, including the Agent Development Kit.
  • Maintain heavy capital expenditure for AI and cloud infrastructure.

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Earnings History

Estimate Beat Miss Match
GOOG EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $1.51 Q1 '24 actual $1.89, beat Q2 '24 estimate $1.84 Q2 '24 actual $1.89, beat Q3 '24 estimate $1.85 Q3 '24 actual $2.12, beat Q2 '25 estimate $2.18 Q2 '25 actual $2.31, beat Q3 '25 estimate $2.30 Q3 '25 actual $2.87, beat Q4 '25 estimate $2.63 Q4 '25 actual $2.82, beat Q1 '26 estimate $2.68 Q1 '26 actual $5.11, beat Q2 '26 estimate $2.87 Q2 '26 actual $9.11, beat Q3 '26 estimate $3.02 Q4 '26 estimate $3.35 Q1 '27 estimate $3.42 Q2 '27 estimate $3.59
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Analyst Consensus ?

ConsensusBuy77 ratings
Bullish6888.3%
Neutral810.4%
Bearish11.3%

Analyst 52W Price Targets

$336.91Current
$115Low
$304.19Average
$515High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 17, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
JP Morgan Overweight OverweightMaintainOct 15, 2026
UBS Neutral NeutralMaintainOct 14, 2026
TD Cowen Buy BuyMaintainOct 8, 2026
Oppenheimer Outperform OutperformMaintainJul 23, 2026
Scotiabank Sector Outperform Sector OutperformMaintainApr 30, 2026
Show 72 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $336.91. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
UBSAnalyst unavailable$380$351 +12.8%Oct 14, 2026
Stifel NicolausAnalyst unavailable$485$348.61 +44.0%Oct 8, 2026
Wells FargoKen Gawrelski$417$343.83 +23.8%Oct 6, 2026
KeyBancJustin Patterson$435$339.8 +29.1%Oct 1, 2026
HSBCAnalyst unavailable$515$343.94 +52.9%Aug 14, 2026
See 122 more

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Company context

Snapshot as of publication

Alphabet Inc. operates globally, providing a wide array of products and digital platforms to customers across the United States, Europe, the Middle East, Africa, the Asia-Pacific region, Canada, and Latin America. The company's business is organized into three primary segments: Google Services, Google Cloud, and Other Bets. The Google Services division delivers a broad spectrum of consumer-facing offerings, which include its advertising products, the Android operating system, Chrome browser, various hardware devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search functionality, and YouTube.…

Historical context

All GOOG earnings

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-04-10T00:01:43.729046+00:00
  3. Polygon adjusted daily market bars · 2026-10-17T15:30:41.656419+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-17T15:30:41.653685+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-17. For educational purposes only; not investment advice.