Alphabet Earnings Preview: What to Expect

Valued at a market cap of $4.2 trillion, Alphabet Inc. (GOOGL) is a multinational technology conglomerate and the parent company of Google. Headquartered in Mountain View, California, the company operates through Google Services, Google Cloud, and Other Bets. Its core businesses include Google Search, YouTube, Android, Chrome, digital advertising, and cloud computing services, alongside AI-powered products such as Gemini. 

The internet media giant is expected to announce its fiscal third-quarter earnings for 2026 on Wednesday, Oct. 28, after the market closes. Ahead of the event, analysts expect GOOGL to report a profit of $2.94 per share on a diluted basis, up 2.4% from $2.87 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.

For the current year, analysts expect GOOGL to report EPS of $20.60, up 90.6% from $10.81 in fiscal 2025. 

GOOGL shares have delivered impressive performance over the past year, rallying 32.6%, notably outperforming the S&P 500 Index’s ($SPX) 14.5% gains and the State Street Communication Services Select Sector SPDR ETF’s (XLC) 5.2% dip over the same time frame.

Alphabet has outpaced the broader market over the past year as its artificial intelligence (AI) investments have strengthened its competitive position and fueled growth across Google Search, YouTube, and Google Cloud. The company’s ability to integrate AI into Search and its Gemini ecosystem has eased concerns that emerging AI rivals would undermine its core advertising business. Alphabet’s resilient advertising business, expanding cloud profitability, and strong demand for AI services have reinforced investor confidence in its long-term growth prospects, helping drive a significant rally in its shares. However, rising AI infrastructure spending and regulatory scrutiny remain key risks. 

Analysts’ consensus opinion on GOOGL stock is bullish, with a “Strong Buy” rating overall. Out of 53 analysts covering the stock, 46 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” and four give a “Hold.” GOOGL’s average analyst price target is $432.56, indicating a notable potential upside of 27.1% from the current levels.