Mountain View, California-based Alphabet Inc. (GOOGL) is a technology conglomerate that oversees a portfolio that spans search, advertising, cloud computing, artificial intelligence, autonomous driving, life sciences, and more. Valued at a market cap of $3 trillion, the company is expected to announce its fiscal Q3 earnings for 2025 after the market closes on Wednesday, Oct. 29.
Before this event, analysts expect Google's parent company to report a profit of $2.29 per share, up 8% from $2.12 per share in the prior-ago quarter. The company has a promising trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $2.31 per share in the previous quarter outpaced the consensus estimates by 7.4%.
For fiscal 2025, analysts expect Alphabet to report a profit of $9.95 per share, representing a 23.8% increase from $8.04 per share in fiscal 2024. Furthermore, its EPS is expected to grow 6.9% year-over-year to $10.64 in fiscal 2026.
Alphabet has surged 54.3% over the past 52 weeks, significantly outpacing both the S&P 500 Index's ($SPX) 14.5% return and the Communication Services Select Sector SPDR Fund’s (XLC) 27.1% rise over the same time frame.
On Jul. 23, Alphabet reported impressive Q2 earnings results, sending its shares up 1% in the following trading session. The company’s quarterly revenue improved 13.8% year-over-year to $96.4 billion, surpassing consensus estimates by 18%. Moreover, its EPS of $2.31 rose 22.2% from the year-ago quarter and came in 7.4% ahead of analyst estimates. AI positively impacted every part of Alphabet’s business, driving strong momentum.
Wall Street analysts are highly optimistic about Alphabet’s stock, with an overall "Strong Buy" rating. Among 56 analysts covering the stock, 42 recommend "Strong Buy," five indicate "Moderate Buy,” and nine suggest "Hold.” While the company is trading above its mean price target of $252.04, its Street-high price target of $300 suggests a 17.1% potential upside from the current levels.
