An Overview of Alphabet's Earnings

Alphabet (NASDAQ:GOOG) will release its quarterly earnings report on Wednesday, 2025-10-29. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Alphabet to report an earnings per share (EPS) of $2.27.

The announcement from Alphabet is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.15, leading to a 0.88% increase in the share price on the subsequent day.

Here's a look at Alphabet's past performance and the resulting price change:

Quarter Q2 2025 Q1 2025 Q4 2024 Q3 2024
EPS Estimate 2.16 2.02 2.13 1.85
EPS Actual 2.31 2.81 2.15 2.12
Price Change % 1.00 1.00 -7.00 3.00

Tracking Alphabet's Stock Performance

Shares of Alphabet were trading at $269.93 as of October 27. Over the last 52-week period, shares are up 52.06%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Alphabet

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Alphabet.

With 9 analyst ratings, Alphabet has a consensus rating of Outperform. The average one-year price target is $274.11, indicating a potential 1.55% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of Meta Platforms, Reddit and Pinterest, three major players in the industry, shedding light on their relative performance expectations and market positioning.

  • Analysts currently favor an Outperform trajectory for Meta Platforms, with an average 1-year price target of $880.34, suggesting a potential 226.14% upside.
  • Analysts currently favor an Buy trajectory for Reddit, with an average 1-year price target of $241.09, suggesting a potential 10.68% downside.
  • Analysts currently favor an Buy trajectory for Pinterest, with an average 1-year price target of $45.12, suggesting a potential 83.28% downside.

Peer Analysis Summary

Within the peer analysis summary, vital metrics for Meta Platforms, Reddit and Pinterest are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Alphabet Outperform 13.79% $57.39B 7.96%
Meta Platforms Outperform 21.61% $39.02B 9.65%
Reddit Buy 77.69% $453.73M 3.88%
Pinterest Buy 16.93% $795.22M 0.82%

Key Takeaway:

Alphabet is positioned in the middle for Consensus rating. It ranks at the top for Revenue Growth, with a growth rate of 13.79%. In terms of Gross Profit, Alphabet is at the top with $57.39B. For Return on Equity, Alphabet is at the bottom with a rate of 7.96%.

Get to Know Alphabet Better

Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

Unraveling the Financial Story of Alphabet

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Alphabet displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 13.79%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Alphabet's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 29.24% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Alphabet's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.96%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Alphabet's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.77% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.1.

To track all earnings releases for Alphabet visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Market News and Data brought to you by Benzinga APIs

Posted In:
Comments
Loading...