US earnings
Alphabet Q3 2025 earnings preview: Google Cloud & ad revenue in focus
Anticipation builds as Alphabet prepares to reveal its Q3 earnings, with eyes on Google Cloud's growth and shifts in advertising revenue.
When will Alphabet report its latest earnings?
Alphabet is expected to report its third quarter (Q3) 2025 earnings after the market closes on Wednesday, 29 October 2025.
Backdrop
Alphabet is the parent company of Google, an American multinational technology company specialising in internet-related services and products such as search engines, online advertising, cloud computing, software, and hardware. It is a subsidiary of Alphabet Inc., which is part of the "Magnificent Seven," alongside Tesla, Microsoft, Nvidia, Apple, Meta, and Amazon.
Q2 2025 financial highlights
Alphabet's second-quarter (Q2) results, delivered in late July, exceeded Wall Street's expectations, outperforming on both the top and bottom lines.
- Revenues of $96.4 billion, surpassing the $94 billion expected
- Earnings per share (EPS) of $2.31, beating market forecasts of $2.18
- Google Services revenues increased 12% to $82.5 billion, reflecting strong performance across Google Search and other platforms, Google subscriptions, devices, and YouTube ads
- Google Cloud revenues increased 32% to $13.6 billion, led by growth in Google Cloud Platform (GCP) across core GCP products, Artificial Intelligence (AI) infrastructure, and generative AI solutions.
Sundar Pichai, Chief Executive Officer (CEO), stated: 'We had a standout quarter, with robust growth across the company. We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well. We continue to see strong performance in YouTube as well as subscriptions offerings. And Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run-rate is now more than $50 billion. With this strong and growing demand for our Cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead.'
Alphabet Q2 2025 income statement
Alphabet reports Google earnings under three segments: Google Services, Google Cloud, and Other Bets which aren’t individually material and which include its self-driving car until Waymo and life sciences unit Verily.
Segment revenue breakdown
Q3 2025 earnings expectations
- Revenue: $99.75 billion vs $96.4 billion in Q2 2025
- EPS: $2.29 vs $2.31 in Q2 2025
- Google Services: $84.2 billion vs $82.5 billion in Q2 2025
- Google Cloud: $14.1 billion vs $13.6 billion in Q2 2025
What else to watch for?
Revenue growth
Monitor the rate of growth in core segments, including services, as well as contributions from newer areas such as cloud computing, with a particular focus on performance and growth rate compared to competitors like Amazon Web Services (AWS) and Microsoft Azure.
Advertising revenue
Look for trends in advertising revenue, a significant part of Google's income.
Cloud backlog
Watch for the Google Cloud backlog to hit $110 billion, a 15% quarter-on-quarter (QoQ) increase , as Alphabet pursues a $100 billion+ annual recurring revenue (ARR) target by 2027.
AI monetisation
Investors will examine Alphabet's progress in turning AI features like Gemini Ultra and AI Overviews (now in over 30% of searches) into revenue, with expectations of a 50% year-on-year (YoY) jump to over $2 billion.
Capex guidance
With AI data centres impacting margins and cash, anticipate full-year 2025 spending guidance of $88 – $92 billion (up from $85 billion).
Guidance and outlook
Pay attention to the management’s guidance and strategic outlook for the remainder of 2025 and for 2026.
Is Alphabet a buy or a sell?
Alphabet has a TipRanks Smart Score of '9 outperform' and is rated as a 'strong buy' by analysts with 30 'buy' recommendations, 8 'hold' recommendations, and 0 'sell' recommendations, as of 20 October 2025.
Alphabet TipRanks score chart
Alphabet technical analysis
Alphabet shares have surged 33.27% in 2025, outperforming the Nasdaq 100, which has gained just over 18% during the same time. This follows Alphabet's 35% gain in 2024.
Just last week, Alphabet hit a fresh record high of $257.58, where it encountered weekly trend channel resistance near $258. If Alphabet's earnings meet and beat expectations, it can break above this weekly trend channel resistance and extend its gains towards the next upside target at $280.
Alphabet weekly candlestick chart
In the event of earnings disappointment, which causes the share price to reject weekly trend channel resistance at $258, there is support at $236.69 from the low it hit on 10 October. Below here, the next level of support is at $225, which is the low of the day after it gapped over 9% higher on 3 September.
Alphabet daily candlestick chart
- Source: TradingView. The figures stated are as of 20 October 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.
Important to know
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Ready to open an IG account?
Start your trading journey now
Connect with us
Disclaimers:
- All forms of investments carry risks, including the potential loss of all or part of your principal amount invested. The value of an investment product may rise or fall, and may also become valueless. Past performance is not indicative of future results. Please ensure that you fully understand, and are aware of, the risks and costs involved.
- Trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits. Refer to the Risk Disclosure Statement and Risk Fact sheet.
- IG Asia Pte Ltd (Co. Reg. No. 200510021K)("IG") is regulated by the Monetary Authority of Singapore and holds a capital markets services licence.
- IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
- The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
- This advertisement has not been reviewed by the Monetary Authority of Singapore.
