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Alphabet (GOOGL, GOOG) is set to report its fourth quarter financial results after the bell on Wednesday amid growing optimism from Wall Street over the Google parent company’s AI leadership.
Analysts tracked by Bloomberg expect revenue to climb more than 15% to $111.4 billion and earnings per share to rise to $2.65 from $2.15 in the year-ago period. The projected jump in revenue is expected to be spurred by a more than 35% rise in Google Cloud revenue to $16.2 billion.
Google Services — the segment including ad revenue from Search and YouTube, which accounts for the majority of Alphabet’s revenue — is estimated to see revenue climb a more modest 13% from the previous year to $94.9 billion, per Bloomberg consensus estimates.
Alphabet stock could rise or fall as much as 5% following its fourth quarter report, according to Bloomberg data.
The stock has soared 25% since its last earnings report showed the tech giant beginning to benefit from a slew of AI deals with Meta (META), Anthropic (ANTH.PVT), and OpenAI (OPAI.PVT) involving its cloud segment. The release of Google’s Gemini 3 AI model — which outperformed competing models on benchmark tests and prompted rival OpenAI to declare a “code red” — as well as the announcement of a landmark deal with Apple, cemented Alphabet’s position as an AI winner and pushed the stock higher.
Read more: Live coverage of corporate earnings
At the same time, the broader “Magnificent Seven” group of Big Tech stocks is collectively down about 3% over that period, led by a 24% drop in Microsoft shares.
Alphabet is positioned to boast “the highest quality top-line AI acceleration stories in the public universe,” Raymond James analyst Josh Beck wrote in a late-January note to clients, upgrading the stock’s rating to a Strong Buy from Outperform. He pointed to Google’s advantage as a full-stack AI provider, as the company has begun selling its AI chips, called TPUs, to external customers rather than reserving them solely for internal use.
Ahead of Wednesday’s results, Wall Street believes Alphabet will benefit from broader strength in advertising demand — as evidenced by Meta’s latest earnings report — in addition to growing adoption of Gemini 3 and demand for its AI chips.
“[W]e believe Gemini 3.0 and TPUs are increasingly differentiating Google offerings, which could support new mega-deal wins,” Bank of America analyst Justin Post wrote in a note to clients last week.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.