What analysts are looking for in Google parent Alphabet’s Q4 earnings

Google-parent Alphabet is among a host of earnings reports from some of the largest companies in the world this week that are top of mind for investors. Alphabet’s fourth-quarter results are due Tuesday after the stock market closes. The owner of YouTube and Fitbit is navigating questions surrounding its competitive standing in the artificial intelligence race, particularly tied to its search engine growth, infrastructure investments, and ongoing product innovation in AI models, self-driving technology and quantum computing. Analysts polled by LSEG expect Alphabet to earn $2.13 per share on $96.56 billion in revenue. Last quarter, the company exceeded estimates on the top and bottom lines , driven by strong revenue growth from its cloud unit. Alphabet’s stock is up about 8% this year, with the majority of analysts generally bullish on its advancements and opportunities in AI and hopeful that a new chief financial officer could improve its cost structure. Sentiment remains positive on Alphabet’s valuation, too, as analysts polled by FactSet have a consensus buy rating and $217 target price, suggesting about 8% potential upside from Monday’s close. GOOGL 1Y mountain Alphabet stock over the past year. Shares advanced as much as 2.7% intraday on Tuesday ahead of the earnings report, reaching an all-time high. GOOGL YTD mountain Google stock performance. Analysts from several firms — including JPMorgan, Citi and Bank of America — reiterated their bullish ratings and price targets on Alphabet. Many expect Google to benefit from strong advertising spending growth, and believe it’s in safe hands as Meta’s recent results suggested that generative AI is driving ad price growth. Meta’s earnings “should also benefit GOOG, cementing it as an AI winner,” Oppenheimer analyst Jason Helfstein said in a note to clients last week. “If investors begin to struggle with META’s revenue outlook or [mid single digit] 2025 EPS growth, GOOG could become [a] more attractive alternative.” Helfstein kept his outperform rating but raised his price target by $10 to $225, citing confidence that users engagement with Google’s search engine remains strong and that ad spending should benefit from robust consumer spending. Bank of America and JPMorgan are similarly optimistic on continued search growth, aided by strength in e-commerce and ad spending, the success of AI overviews (AIOs) in Google Search and AI targeting in Youtube driving greater user engagement. “We remain constructive on Alphabet and believe [the] Street is likely underestimating potential for AIOs to drive Search monetization strength in 2025 … We see Alphabet as well positioned long term with leading AI technology to apply to search, YouTube and Cloud businesses,” Bank of American analyst Justin Post said in a report to clients last Friday. Post maintained his $225 price target, implying about 12% upside over the next 12 months from Monday’s close. JPMorgan analyst Doug Anmuth is also bullish on Alphabet’s array of AI products, including large language models, infrastructure and chips, agentic AI applications with NotebookLM, Astra and Mariner among others, which he believes could drive upside across the company as well as in Google Cloud. He recently maintained an overweight investment opinion and year-end price target of $232. “Google’s accelerated pace of innovation is very evident into the new year with many significant recent product announcements and updates across GenAI (new LLMs and agentic applications), technical infrastructure, Android, and Waymo, and it is a key factor in our positive view on Google shares in 2025,” Anmuth said in a report. To be sure, other analysts are unconvinced that Alphabet has a smooth road ahead. Citizens JMP recently downgraded the stock to market perform from market outperform, citing risks tied to the Justice Department’s antitrust case against Google that the bank believes could hurt Google’s search business in the U.S., and its revenue. “With a final ruling expected by August 2025, we expect this case to be a primary focus for investors in the year ahead, limiting multiple expansion,” Citizens JMP analyst Andrew Boone wrote in a report last month, adding that shares appeared “fairly valued” after returning 37% in 2024.