For the quarter ended December 2025, Alphabet (GOOGL) reported revenue of $97.23 billion, up 19.1% over the same period last year. EPS came in at $2.82, compared to $2.15 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $94.79 billion, representing a surprise of +2.58%. The company delivered an EPS surprise of +9.73%, with the consensus EPS estimate being $2.57.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Wall Street analysts forecast that Alphabet (GOOGL) will report quarterly earnings of $2.58 per share in its upcoming release, pointing to a year-over-year increase of 20%. It is anticipated that revenues will amount to $94.7 billion, exhibiting an increase of 16% compared to the year-ago quarter.The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their ...

Core Insights - Warren Buffett is preparing to step down as CEO of Berkshire Hathaway, indicating he will "go quiet" but still communicate through his annual Thanksgiving letter [1][8] - Berkshire Hathaway made a significant investment in Alphabet, purchasing over 17.8 million Class A shares valued at $4.9 billion, marking the largest addition in Q3 [2][5] - The company reduced its positions in Apple and Bank of America, with Apple seeing a nearly 15% cut, amounting to $10.6 billion, while Bank of America was reduced by 6.1%, or around $1.9 billion [5][7] Investment Activity - The purchase of Alphabet shares is notable as Buffett has historically avoided tech stocks, although he acknowledged missing opportunities with Alphabet in the past [3][4] - The increase in Alphabet shares led to a 3.5% rise in its stock during after-hours trading [2] - Despite the reduction in Apple shares, it remains Berkshire's largest equity position at $64.9 billion, constituting 21% of the portfolio [7] Leadership Transition - Greg Abel is set to take over as CEO, with Buffett gradually transferring responsibilities to him [4][9] - Buffett plans to continue engaging with shareholders through his Thanksgiving messages while stepping back from more public roles [9][10] Philanthropic Efforts - Buffett intends to increase lifetime gifts to foundations run by his children, raising the number of Class B shares donated from 300,000 to 400,000 [10] - The total value of gifts increased by 17% to $1.3 billion, reflecting Buffett's ongoing commitment to philanthropy [11]

Core Insights - Alphabet (GOOGL) reported $87.47 billion in revenue for Q3 2025, a year-over-year increase of 17.3% and an EPS of $2.87, up from $2.12 a year ago, exceeding Zacks Consensus Estimates for revenue and EPS [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $84.96 billion by +2.95% [1] - EPS surprised by +26.99% compared to the consensus estimate of $2.26 [1] Key Metrics - Total Traffic Acquisition Costs (TAC) were $14.88 billion, slightly below the average estimate of $15.01 billion [4] - Headcount increased to 190,167, surpassing the average estimate of 187,952 [4] - Revenue from EMEA was $29.91 billion, exceeding the estimate of $29.22 billion, representing a +17.4% year-over-year change [4] - Revenue from the United States reached $48.76 billion, above the estimate of $48.11 billion, with a +13% year-over-year change [4] - Revenue from Other Americas was $6.07 billion, slightly below the estimate of $6.14 billion, showing a +19.1% year-over-year change [4] - Revenue from APAC was $17.82 billion, exceeding the estimate of $17.15 billion, with a +22.5% year-over-year change [4] - Revenue from Google properties was $66.83 billion, above the estimate of $65.18 billion, representing a +14.6% year-over-year change [4] - YouTube ad revenue was $10.26 billion, surpassing the estimate of $10.03 billion, reflecting a +15% year-over-year change [4] - Google Network revenue was $7.35 billion, matching the average estimate, but showing a -2.6% year-over-year change [4] - Google Search & other revenue was $56.57 billion, exceeding the estimate of $55.15 billion, with a +14.5% year-over-year change [4] - Google advertising revenue was $74.18 billion, above the estimate of $72.52 billion, representing a +12.7% year-over-year change [4] - Google Cloud revenue was $15.16 billion, exceeding the estimate of $14.68 billion, with a +33.5% year-over-year change [4] Stock Performance - Alphabet's shares returned +10% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Insights - Alphabet Inc. is experiencing all-time high stock prices driven by advancements in artificial intelligence and cloud initiatives, with the stock reaching $210.52 on August 25, 2025 [1] - The company's Q2 results highlight Google Search, YouTube, and Cloud as reliable growth drivers, with significant AI investments leading to new partnerships and revenue streams [2] Partnerships - Alphabet is rapidly expanding in the cloud-computing market, benefiting from partnerships with companies like NVIDIA and PayPal [3] - A recent six-year cloud computing agreement with Meta Platforms is valued at over $10 billion, marking a significant partnership following a similar deal with OpenAI [3] - Apple is reportedly in discussions with Alphabet to integrate Gemini AI models into Siri, potentially giving Alphabet access to a large portion of the global smartphone market [4] Waymo Growth - Waymo, Alphabet's autonomous driving unit, has seen substantial growth, with over 700,000 recorded monthly paid trips as of March 2025, a 55-fold increase from August 2023 [5] Q2 2025 Earnings Results - Alphabet's Q2 2025 earnings were $2.31 per share, exceeding estimates by 7.44% and growing 22.2% year over year [6] - Google Cloud revenues increased by 31.7% year over year to $13.62 billion, surpassing estimates by 4.24% [7] - Google Services revenues rose 11.7% year over year to $82.54 billion, accounting for 85.6% of total revenues, beating estimates by 3.28% [7] Advertising and Subscriptions - Google advertising revenues grew 10.4% year over year to $71.34 billion, making up 74% of total revenues and exceeding estimates by 3% [8] - Google subscriptions, platforms, and devices revenues reached $11.2 billion in Q2, up 20.3% year over year, also beating estimates by 4.72% [8] Valuation - Alphabet shares have increased by 9.7% year-to-date and 24.6% over the past 12 months, outperforming the Zacks Internet – Services Market and the Computer & Technology sector [9] - The stock trades at an EV/EBITDA multiple of 17.6X, compared to 14.1X for the Computer Software-Services Market, indicating it is not highly overvalued [10] Price Target - Analysts have set an average price target of $220.43 for Alphabet, representing a 5.72% increase from the last closing price of $208.50 [12] ETFs in Focus - Several ETFs with high exposure to Alphabet include Fidelity MSCI Communication Services Index ETF (14%), Vanguard Communication Services ETF (13%), and iShares Global Comm Services ETF (12.9%) [13]

Core Viewpoint - Alphabet's recent earnings report shows strong performance with significant year-over-year growth in earnings and revenues, raising questions about the sustainability of this positive trend leading up to the next earnings release [1][2]. Financial Performance - Alphabet's Q2 2025 earnings were $2.31 per share, exceeding estimates by 7.44% and growing 22.2% year over year [2]. - Total revenues reached $96.43 billion, a 13.8% increase year over year, with net revenues (excluding TAC) at $81.72 billion, surpassing estimates by 2.2% and growing 14.5% year over year [3]. - Google Cloud revenues surged 31.7% year over year to $13.62 billion, accounting for 14.1% of total revenues and beating estimates by 4.24% [4]. - Google Services revenues increased 11.7% year over year to $82.54 billion, making up 85.6% of total revenues and exceeding estimates by 3.28% [5]. - Google advertising revenues rose 10.4% year over year to $71.34 billion, representing 74% of total revenues and beating estimates by 3% [6]. Segment Performance - Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing estimates by 3.04% [6]. - YouTube's advertising revenues improved 13.1% year over year to $9.77 billion, beating estimates by 2.9% [6]. - Google Network revenues decreased 1.2% year over year to $7.35 billion but still beat estimates by 2.88% [7]. - Google subscriptions, platforms, and devices revenues were $11.2 billion, up 20.3% year over year, exceeding estimates by 4.72% [7]. - Other Bets' revenues were $373 million, up 2.2% year over year, but missed estimates by 12.16% [7]. Cost and Margin Analysis - Operating expenses were $65.16 billion, up 13.7% year over year, with the operating margin at 32.4%, expanding 10 basis points year over year [8]. - Google Services' operating margin was 40.1%, contracting 10 basis points year over year, while Google Cloud's operating income increased to $2.83 billion from $1.17 billion year over year [8]. Balance Sheet and Cash Flow - As of June 30, 2025, cash and marketable securities totaled $95.15 billion, slightly down from $95.33 billion as of March 31, 2025 [10]. - Long-term debt increased to $23.61 billion from $10.89 billion, following the issuance of $12.5 billion in senior unsecured notes [11]. - Cash generated from operations was $27.75 billion in Q2 2025, down from $36.15 billion in Q1 2025, with capital expenditures of $22.45 billion, resulting in free cash flow of $5.3 billion [11]. Future Outlook - Alphabet expects to increase capital expenditures to $85 billion for 2025 [12]. - Consensus estimates for Alphabet have trended upward, with a 5.39% increase due to recent performance [13]. - Alphabet holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15].

Core Insights - Alphabet (GOOGL) reported $81.72 billion in revenue for Q2 2025, a year-over-year increase of 14.5% and a surprise of +2.82% over the Zacks Consensus Estimate of $79.48 billion [1] - The EPS for the quarter was $5.12, significantly higher than the $1.89 reported a year ago, resulting in an EPS surprise of +138.14% compared to the consensus estimate of $2.15 [1] Financial Performance Metrics - Total Traffic Acquisition Costs (TAC) were $14.71 billion, exceeding the average estimate of $14.1 billion [4] - Headcount increased to 187,103, surpassing the estimated 185,578 [4] - Revenue from EMEA was $28.26 billion, above the average estimate of $27.56 billion, reflecting a +14.5% year-over-year change [4] - Revenue from the United States reached $46.06 billion, compared to the average estimate of $45.12 billion, marking an +11.8% year-over-year increase [4] - Revenue from Other Americas was $5.74 billion, exceeding the average estimate of $5.5 billion, with a +16.1% year-over-year change [4] - Revenue from APAC was $16.48 billion, surpassing the estimated $15.55 billion, representing a +19.2% year-over-year increase [4] - Revenue from Google properties was $63.99 billion, above the average estimate of $62.12 billion, reflecting a +11.9% year-over-year change [4] - Google Cloud revenue was $13.62 billion, exceeding the estimate of $13.07 billion, with a +31.7% year-over-year increase [4] - YouTube ads generated $9.8 billion, surpassing the estimate of $9.52 billion, marking a +13.1% year-over-year change [4] - Google advertising revenue totaled $71.34 billion, exceeding the average estimate of $69.26 billion, reflecting a +10.4% year-over-year increase [4] - Revenue from Google Search & other was $54.19 billion, above the average estimate of $52.59 billion, representing a +11.7% year-over-year change [4] - Revenue from Google Network was $7.35 billion, slightly above the average estimate of $7.15 billion, but showing a year-over-year decline of -1.2% [4] Stock Performance - Alphabet's shares returned +14.7% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Analysts expect Alphabet (GOOGL) to report quarterly earnings of $2.14 per share, reflecting a year-over-year increase of 13.2% [1] - Revenue projections stand at $79.25 billion, indicating an 11.1% increase from the previous year [1] - The consensus EPS estimate has been revised upward by 1.3% over the past 30 days, showing analysts' reappraisal of initial projections [1] Revenue Estimates - Revenues from Google properties are projected to reach $61.86 billion, a change of +8.2% year-over-year [4] - Google Cloud revenues are expected to be $13.04 billion, reflecting a significant increase of +26% [4] - YouTube ad revenues are forecasted at $9.47 billion, indicating a +9.3% change from the prior year [4] - Total Google advertising revenues are estimated at $68.98 billion, with a year-over-year change of +6.8% [5] - Revenues from Google Search & other are projected to be $52.36 billion, a +7.9% increase [5] - Google Network revenues are expected to reach $7.15 billion, showing a decline of -4% [5] Regional Revenue Estimates - Revenues from EMEA are expected to be $27.45 billion, reflecting an increase of +11.2% [6] - U.S. revenues are projected at $44.74 billion, indicating an +8.6% change [6] - Other Americas (Canada and Latin America) revenues are estimated at $5.42 billion, a +9.7% increase [6] - APAC revenues are expected to be $15.19 billion, reflecting a +9.9% change [7] Other Key Metrics - Total traffic acquisition costs (TAC) are estimated at $14.07 billion, compared to $13.39 billion from the previous year [7] - The expected headcount is 185,578, up from 179,582 in the same quarter last year [8] - Alphabet shares have increased by +5.9% over the past month, outperforming the Zacks S&P 500 composite's +5.4% [8]

Core Insights - Alphabet (GOOGL) reported $76.49 billion in revenue for Q1 2025, a year-over-year increase of 13.2% and a surprise of +1.27% over the Zacks Consensus Estimate of $75.53 billion [1] - The EPS for the same period was $2.81, compared to $1.89 a year ago, representing a surprise of +39.11% over the consensus estimate of $2.02 [1] Financial Performance Metrics - Total Traffic Acquisition Costs (TAC) were $13.75 billion, exceeding the average estimate of $13.59 billion [4] - Headcount reached 185,719, surpassing the average estimate of 183,390 [4] - Revenue from EMEA was $25.92 billion, slightly above the estimate of $25.85 billion, reflecting a +9% year-over-year change [4] - Revenue from the United States was $43.96 billion, exceeding the estimate of $43.27 billion, with a year-over-year change of +13.5% [4] - Revenue from Other Americas (Canada and Latin America) was $5.23 billion, above the estimate of $5.01 billion, representing a +12.5% year-over-year change [4] - Revenue from APAC was $14.85 billion, surpassing the estimate of $14.33 billion, with a year-over-year change of +11.8% [4] - Revenue from Google properties was $59.63 billion, exceeding the estimate of $59.34 billion, reflecting a +9.9% year-over-year change [4] - Revenue from Google Cloud was $12.26 billion, above the estimate of $12.16 billion, representing a +28.1% year-over-year change [4] - Revenue from YouTube ads was $8.93 billion, slightly above the estimate of $8.90 billion, with a year-over-year change of +10.4% [4] - Revenue from Google advertising was $66.89 billion, exceeding the estimate of $66.29 billion, reflecting a +8.5% year-over-year change [4] - Revenue from Google Search & other was $50.70 billion, surpassing the estimate of $50.29 billion, with a year-over-year change of +9.9% [4] - Revenue from Google Network was $7.26 billion, above the estimate of $7.07 billion, but showing a year-over-year decline of -2.1% [4] Stock Performance - Alphabet's shares returned -5.9% over the past month, compared to the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - The Nasdaq Composite has entered correction territory, dropping over 13% from its record high on December 16, indicating a natural part of the stock market cycle that presents potential investment opportunities, particularly in companies like Alphabet [1][2][3]. Company Performance - Alphabet's stock is down 12% year to date and nearly 20% from its 12-month high, with only Tesla and Nvidia performing worse among the "Magnificent Seven" stocks [4]. - Despite the stock price drop, Alphabet's financial performance remains strong, with over $350 billion in revenue for 2024, a 14% year-over-year increase, and a 31% rise in operating income from 2023 [5]. Revenue Streams - Google advertising is the primary revenue source for Alphabet, but Google Cloud and YouTube have also shown consistent growth, contributing to an annual revenue run rate of $110 billion [6]. - Google Cloud's revenue grew 30% year over year in the fourth quarter, reaching $12 billion, driven by demand for cloud services [7]. Future Investments - Alphabet plans to invest approximately $75 billion in capital expenditures in 2025, focusing on expanding its AI capabilities and enhancing Google Cloud's competitiveness [8]. Valuation - Following recent stock price declines, Alphabet's price-to-earnings (P/E) ratio is around 20.5, below its 10-year average, suggesting the stock may be undervalued compared to other major tech stocks [9][10].