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Key Takeaways
- Google parent Alphabet reports second-quarter earnings after the bell Tuesday.
- Analysts expect revenue and earnings to rise from the year-ago period.
- The company will report Google Cloud revenue, with investors likely to be watching for sustained growth.
- Alphabet could also provide updates on its artificial intelligence initiatives.
Google parent Alphabet (GOOGL) is set to report second-quarter earnings after the bell Tuesday with investors likely to be watching for sustained cloud growth and updates on artificial intelligence (AI) initiatives.
The tech giant is projected to report revenue of $84.3 billion, according to estimates compiled by Visible Alpha, representing a 13% rise over the year-ago period. Net income is expected to come in at $23 billion, or $1.85 per share, an increase from the second quarter of 2023.
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
| Revenue | $84.3 billion | $80.54 billion | $74.6 billion |
| Diluted Earnings Per Share | $1.85 | $1.89 | $1.44 |
| Net Income | $23 billion | $23.66 billion | $18.37 billion |
Key Metric: Cloud Growth
Investors will likely watch for sustained growth in Google Cloud, as the cloud segment revenue could help ease investor concerns around big tech’s increased spending to invest in AI.
Analysts expect cloud revenue of $10.22 billion, according to consensus estimates from Visible Alpha, representing growth from the quarter prior and the year-ago period.
Business Spotlight: AI Impact
The company could provide investors with updates on projects like its AI assistants, Gemini Live and Project Astra, which could help Alphabet compete with Microsoft-backed (MSFT) OpenAI. Alphabet may offer insights into how AI Overview is affecting Google Search.
It might also offer context about its interest in dealmaking. The company is reportedly in talks with cybersecurity startup Wiz to acquire it in a deal worth roughly $23 billion. If the deal goes through, it would be the largest acquisition the tech giant has ever made. Google was also recently linked with a possible acquisition of HubSpot (HUBS), though it has reportedly moved on.
Alphabet shares have gained nearly 30% since the start of the year, at $178.43 as of 11:45 a.m. ET Friday.