By Alphabet Inc. is scheduled to report its third-quarter earnings after the market close on Wednesday, with investors closely watching whether the company can sustain its impressive growth trajectory amid heightened competition in artificial intelligence (AI) and ongoing regulatory scrutiny.
Google’s stock rose 1.91% on Wednesday ahead of the earnings announcement.
Strong expectations and a record stock surge
According to LSEG consensus estimates, analysts expect Alphabet to post revenue of $99.89 billion and earnings per share of $2.33 for the quarter, representing a 13% year-over-year increase in revenue.
StreetAccount data also projects YouTube advertising revenue at $10.01 billion, Google Cloud revenue at $14.74 billion, and traffic acquisition costs at $14.82 billion.
Alphabet’s stock has surged 38% during the third quarter, marking its best quarterly performance in two decades, and has climbed another 11% so far in October.
The rally was fueled by optimism around the company’s AI strategy, new product announcements, and a favorable legal outcome in its antitrust battle with the US Department of Justice (DOJ).
In September, US District Judge Amit Mehta ruled against the most severe antitrust remedies sought by the DOJ, including a potential forced sale of Google’s Chrome browser.
The decision allowed Google to retain control over one of its most valuable data sources for digital advertising, boosting investor confidence and pushing the company into the $3 trillion market capitalization club—joining Nvidia, Microsoft, and Apple.
Expanding AI ecosystem and new product launches
Throughout the third quarter, Alphabet accelerated its AI rollout across both consumer and enterprise segments.
In August, Google unveiled its AI-powered Pixel 10 smartphone series to rival Apple’s iPhone and launched an extensive advertising campaign highlighting the device’s new capabilities.
Reports also surfaced that Google is in talks to integrate its Gemini AI technology into Apple’s Siri voice assistant, further expanding Gemini’s reach.
In September, the Gemini app topped Apple’s App Store charts, surpassing OpenAI’s ChatGPT, following the introduction of its Nano Banana image-editing feature, powered by the “Flash” AI model.
Google also integrated Gemini into Chrome for Mac and Windows, allowing users to analyze webpages, manage tabs, and perform complex tasks within the browser.
The company later introduced Gemini Enterprise in October, targeting corporate clients with specialized AI agents designed for specific work functions.
At Salesforce’s Dreamforce conference, CEO Sundar Pichai confirmed that Gemini 3, the next iteration of Google’s AI model, will launch later this year.
Workforce restructuring and Waymo expansion
Alphabet continued to streamline its operations during the quarter, aligning its workforce and resources toward AI development.
The company eliminated over one-third of its mid-level managers overseeing small teams compared to a year earlier, and laid off more than 100 design roles in its cloud division.
Google also tightened remote work policies and encouraged greater adoption of AI tools among employees.
Meanwhile, Alphabet’s self-driving unit Waymo made significant progress.
The company received permits to test its autonomous vehicles in New York City and driverless rides at San Jose International Airport, with plans to launch paid airport rides later this year.
Waymo also announced it will bring its robotaxi services to London, marking its first expansion into Europe.
In a notable policy shift, YouTube began allowing accounts previously banned for misinformation to apply for reinstatement, citing a renewed commitment to “free expression.”
Alphabet’s earnings report will offer insight into how the company is balancing its AI ambitions, regulatory challenges, and cost-cutting efforts amid one of its strongest financial runs in recent years.
The post Alphabet set to report Q3 earnings after market close, what to expect? appeared first on Invezz
