Alphabet (GOOGL) Surpasses Q2 Earnings and Revenue Estimates

Core Insights - Alphabet (GOOGL) reported quarterly earnings of $5.12 per share, significantly exceeding the Zacks Consensus Estimate of $2.15 per share, and up from $1.89 per share a year ago, representing an earnings surprise of +138.14% [1] - The company achieved revenues of $81.72 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.82% and increasing from $71.36 billion year-over-year [2] - Alphabet has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise of +138.14% indicates strong performance relative to expectations, with a previous quarter's surprise of +39.11% [1][2] - The current consensus EPS estimate for the upcoming quarter is $2.20, with projected revenues of $82.63 billion, and for the current fiscal year, the EPS estimate is $9.59 on revenues of $329.15 billion [7] Market Position - Alphabet's stock has underperformed the S&P 500, gaining about 1.1% year-to-date compared to the S&P 500's 7.3% increase [3] - The Zacks Rank for Alphabet is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Services industry, to which Alphabet belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Alphabet's stock performance [5]