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.
Alphabet's second-quarter (Q2) results, delivered in late July, exceeded Wall Street's expectations, outperforming on both the top and bottom lines.
Q2 2025 financial highlights
- 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.
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