Alphabet Set to Announce Q2 Earnings Results After Market Close

Alphabet, Google's parent company, is poised to release its second-quarter earnings results on Tuesday after the market closes. Investors and analysts are eager to see if Alphabet can sustain its growth trajectory amid a challenging market landscape.

For Q2, analysts expect the following:

Earnings per share (EPS): $1.84, according to LSEG

Revenue: $84.19 billion, according to LSEG

Additionally, Wall Street will closely monitor key performance indicators:

YouTube advertising revenue: $8.93 billion (StreetAccount)

Google Cloud revenue: $10.20 billion (StreetAccount)

Traffic acquisition costs (TAC): $13.54 billion (StreetAccount)

Alphabet has outperformed many of its tech counterparts this year, and there is a strong focus on its ability to maintain steady growth, particularly in the cloud sector and overall revenue. This quarter has seen significant developments, including AI advancements, executive changes, and ongoing restructuring.

AI and Technological Developments

During Q2, Alphabet made several notable AI-related announcements. At its annual developer conference in May, the company introduced Gemini 1.5 Flash, a new large language model capable of summarizing conversations, captioning images and videos, and extracting data from extensive documents. Additionally, Alphabet launched AI Overview, a feature that CEO Sundar Pichai described as the most significant change in search in 25 years. This tool provides summarized answers to queries directly at the top of search results, albeit with some early criticism regarding accuracy.

Expansion and Market Moves

Alphabet's self-driving car unit, Waymo, expanded its service to all users in San Francisco, marking its second citywide rollout after Phoenix. This move signifies Alphabet's continued efforts to diversify and innovate within the tech space.

Executive Changes and Layoffs

Alphabet also announced the appointment of Anat Ashkenazi as the new Chief Financial Officer, effective July 31. Ashkenazi, formerly of Eli Lilly, replaces Ruth Porat, who has transitioned to the role of Alphabet’s president and chief investment officer.

The quarter was marked by further cost-cutting measures, including layoffs within Google's cloud unit and core engineering teams. These actions have sparked internal criticism and concerns over employee morale.

Financial and Market Impact

Despite these challenges, Alphabet remains a dominant player in the digital ad market, with Google Search holding a 91% global market share. The company's strategic decisions and technological advancements will be closely scrutinized during the earnings call, particularly in light of recent setbacks such as the failed $23 billion acquisition of cybersecurity firm Wiz.