Preview: Alphabet's Earnings
Alphabet (NASDAQ:GOOG) is gearing up to announce its quarterly earnings on Wednesday, 2025-07-23. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Alphabet will report an earnings per share (EPS) of $2.16.
The market awaits Alphabet's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings History Snapshot
Last quarter the company beat EPS by $0.79, which was followed by a 1.47% increase in the share price the next day.
Here's a look at Alphabet's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.02 | 2.13 | 1.85 | 1.85 |
| EPS Actual | 2.81 | 2.15 | 2.12 | 1.89 |
| Price Change % | 1.0% | -7.000000000000001% | 3.0% | -5.0% |
Market Performance of Alphabet's Stock
Shares of Alphabet were trading at $191.15 as of July 21. Over the last 52-week period, shares are up 9.33%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about Alphabet
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Alphabet.
Alphabet has received a total of 6 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $202.83, the consensus suggests a potential 6.11% upside.
Analyzing Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Meta Platforms, Reddit and Pinterest, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Meta Platforms, with an average 1-year price target of $737.51, suggesting a potential 285.83% upside.
- Analysts currently favor an Neutral trajectory for Reddit, with an average 1-year price target of $151.33, suggesting a potential 20.83% downside.
- Analysts currently favor an Buy trajectory for Pinterest, with an average 1-year price target of $41.47, suggesting a potential 78.3% downside.
Snapshot: Peer Analysis
The peer analysis summary outlines pivotal metrics for Meta Platforms, Reddit and Pinterest, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Alphabet | Buy | 12.04% | $53.87B | 10.30% |
| Meta Platforms | Outperform | 16.07% | $34.74B | 9.05% |
| Neutral | 61.49% | $355.27M | 1.20% | |
| Buy | 15.54% | $655.72M | 0.19% |
Key Takeaway:
Alphabet is positioned in the middle for Consensus rating. It ranks at the bottom for Revenue Growth. In terms of Gross Profit, Alphabet is at the top. For Return on Equity, Alphabet is positioned in the middle among its peers.
Discovering Alphabet: A Closer Look
Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.
Alphabet: Delving into Financials
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Positive Revenue Trend: Examining Alphabet's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.04% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 38.28%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Alphabet's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.3% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Alphabet's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 7.46%, the company showcases efficient use of assets and strong financial health.
Debt Management: Alphabet's debt-to-equity ratio is below the industry average at 0.07, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Alphabet visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
