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Alphabet is scheduled to report its fourth-quarter earnings Wednesday after the market closes. Analysts will closely monitor performance across Google’s advertising units, Google Cloud, and emerging artificial intelligence projects, including the Gemini AI models.
The results will indicate whether Alphabet can maintain its momentum as one of the top-performing stocks of recent years. Over the past six months, the company’s shares have risen more than 70%, contributing to Google joining the $4 trillion market capitalization club alongside Nvidia, Microsoft, and Apple.
Expected numbers and key metrics
Analysts polled by LSEG expect earnings per share of $2.63 on $111.43 billion in revenue. Key segments under review include Google Cloud, projected at $16.18 billion, and YouTube advertising, expected to generate $11.84 billion. Traffic acquisition costs are forecast at $16.20 billion.
Investors will also look for commentary on Alphabet’s recent agreements, including a deal to integrate its Gemini AI models into Apple’s Siri virtual assistant. This partnership could impact millions of Apple users, as the company’s devices number around 2.5 billion globally.
AI innovations driving growth
Fourth-quarter developments have centered on Alphabet’s AI expansion. In November, the company launched Gemini 3 models, receiving strong reviews. Google also unveiled the seventh generation of its Tensor Processing Units, called Ironwood, and Waymo opened robotaxi routes on freeways in three major U.S. cities.
Google’s AI infrastructure boss, Amin Vahdat, said the company must double serving capacity every six months to meet growing AI demand, reflecting the high stakes and investment required in the AI sector.
Acquisitions and new initiatives
Alphabet agreed to acquire data center company Intersect for $4.75 billion in December, supporting its AI and cloud expansion. In January, the company introduced “Personal Intelligence,” which uses Gmail, Google Photos, and other apps to deliver personalized AI responses, as well as the Universal Commerce Protocol to enhance AI-driven shopping.
Additionally, Alphabet licensed top talent from AI voice startup Hume AI to improve Gemini’s voice features, signaling continued integration of AI across its products.
Waymo and broader technology growth
Waymo, Alphabet’s driverless car unit, began operating its service in Miami and raised $16 billion in a funding round, valuing the company at $126 billion. In 2025, Waymo completed 15 million trips across five major U.S. markets, demonstrating Alphabet’s ongoing push into autonomous mobility.
Legal and regulatory matters
Alphabet also filed to appeal a federal judge’s ruling that it holds an illegal monopoly in internet search. The appeal could delay any remedies and remains a key factor in the company’s regulatory outlook.
Investor focus for Q4
Alphabet’s fourth-quarter report will serve as a test of the company’s advertising strength, cloud growth, and AI initiatives. Analysts and investors alike will pay close attention to how AI products such as Gemini, Google Cloud, and Waymo are performing, as well as how upcoming partnerships, particularly with Apple, will influence revenue streams.
Source: Reuters, CNBC
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