This Wednesday brings a pivotal moment for Alphabet Inc. as the tech giant prepares to release its financial results for the final quarter of 2025. The announcement follows a record-breaking Q3, where the company surpassed $100 billion in quarterly revenue for the first time, setting a high bar for continued growth. Investor attention is firmly fixed on the performance of its cloud division and the commercial progress of its artificial intelligence initiatives.
Financial Expectations and Market Sentiment
Market consensus indicates strong confidence among analysts. For Q4 2025, revenue is projected to reach approximately $111.3 billion, representing a year-over-year increase of about 15%. Adjusted earnings per share are expected to land between $2.58 and $2.64, which would translate to growth of 20% to 23%.
A significant portion of this anticipated growth is attributed to Google Cloud. The division is forecast to report revenues near $16.25 billion for the quarter, a surge of 36%. This follows a strong Q3, where cloud revenue hit $15.2 billion, supported by a substantial backlog of $155 billion in commitments, providing clear visibility for future performance.
The Dual Engines of AI and Autonomous Tech
Alphabet’s aggressive push into artificial intelligence is gaining substantial traction. The company’s Gemini language model is now processing 7 billion tokens per minute via direct API usage. The standalone Gemini application itself boasts over 650 million monthly active users. In a late-January update, the company integrated new AI features into its Chrome browser, including image generation and an automated browsing function for paying subscribers.
Concurrently, the autonomous vehicle unit Waymo is making headlines. Reports from Yahoo Finance suggest the division is targeting a funding round of $16 billion, a move that would value Waymo at $110 billion. This development highlights a significant growth avenue beyond Alphabet’s core advertising and cloud businesses.
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A Strong Pre-Earnings Position
Alphabet’s equity has appreciated roughly 68% over the preceding twelve months, reaching a 52-week high of $342.29 in late January. The company’s financial foundation appears robust, with a market capitalization hovering around $4 trillion and a cash reserve of $98.5 billion. Its forward price-to-earnings ratio stands at approximately 30.
Citigroup analyst Ronald Josey has suggested the upcoming results may exceed consensus estimates, citing positive signals from the online advertising sector and persistently strong demand for cloud services. Historically, Alphabet’s share price has reacted positively to the last three quarterly earnings reports, each time posting gains following the announcements.
Key Metrics for Wednesday’s Scrutiny
Beyond the headline revenue and profit figures, investors will dissect several critical details. These include the performance and AI integration within Google Search, YouTube’s standing in the competitive advertising market, and the margin trajectory for Google Cloud. Management’s commentary on capital expenditure plans for 2026 and the forward guidance for free cash flow will also be closely monitored for strategic direction.
The earnings conference call is scheduled for February 4th at 10:30 PM Central European Time. The event will reveal whether Alphabet can successfully carry its current momentum into the new year.
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