Alphabet Set to Report Q2 Earnings With Strong AI-Driven Growth Expected

Earnings
โดย Zacks Investment Research·Read original
Summary · why it matters

Alphabet is scheduled to report second-quarter 2026 results on July 22, with the Zacks Consensus Estimate for earnings at $2.86 per share, indicating 23.81% year-over-year growth, and revenues expected to reach $101.22 billion, up 23.86% from the prior-year quarter. The company has a strong earnings surprise history, beating estimates in each of the last four quarters by an average of 34.43%. Growth is expected to be driven by sustained momentum in Google Search, where AI Overviews and AI Mode are boosting engagement and ad relevance, and by Google Cloud, which saw revenues surge 63% year over year to $20 billion in the first quarter and carries a backlog of roughly $462 billion. YouTube is also seen as a growth catalyst, supported by direct-response advertising and connected-TV viewing, while subscription revenues benefit from YouTube Music, Premium, and Google One. However, aggressive AI infrastructure spending, with a raised 2026 capital-expenditure outlook of $180 to $190 billion, may weigh on near-term profitability, and headwinds persist from the dilutive effect of the Wiz acquisition and declining Google Network advertising revenues. Alphabet shares have risen 13.3% year to date, underperforming the broader Zacks Computer & Technology sector's 16.6% return, and currently trade at a forward 12-month price-to-sales ratio of 9.04 times, above the sector average of 6.88 times. The stock carries a Zacks Rank of 1, or Strong Buy, ahead of the earnings release.

Impact on stocks 4

Artificial Intelligence▲ · 4 stocks
Alphabet Inc Class C
GOOG
▲ PositiveDemandCapitalrelevance

Strong AI-driven growth expected in Google Search and Cloud, with Cloud revenues surging 63% and backlog of $462B.

Theme Impact 3

Off-coverage companies 1

YouTube, LLCPrivate▲ Positive
Demandrelevance

YouTube growth catalyst from direct-response advertising and connected-TV viewing.

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