Alphabet’s First-Quarter Earnings Outlook
Google’s parent company, Alphabet (GOOGL), is set to announce its fiscal first-quarter earnings this Thursday after the market closes. Analysts show a generally optimistic view on the company’s performance amid ongoing economic challenges.
Analyst Sentiment
According to data collected by Visible Alpha, a substantial majority of analysts—14 out of 19—assign “buy” or equivalent ratings to Alphabet’s stock, with the remaining analysts opting for “hold” ratings. This consensus reflects a price target that hovers around $195, suggesting a potential upside of approximately 29% from the recent trading price of around $151.
Growth Predictions Amid Economic Uncertainty
Recent insights from Citi analysts indicate that Google Search is anticipated to be “among the last platforms to experience macro impacts and among the first to recover.” They also assert that advancements in artificial intelligence, particularly tools like Google’s AI Mode in Search and the newly developed Gemini language model, could stimulate further growth.
Continued Confidence from Morgan Stanley
Adding to the positive outlook, Morgan Stanley highlighted the impact of AI on platforms such as Search and YouTube. They insist that “AI-driven platform-level innovation” supports ongoing growth for Alphabet in the long term, despite current market conditions.
Target Prices and Market Predictions
- Citi has set a price target of $195 for Alphabet shares.
- Morgan Stanley projects a target of $185 per share.
Earnings Projections
For the upcoming earnings report, analysts forecast that Alphabet will reveal a revenue of $89.22 billion for the first quarter, representing an 11% year-over-year increase. Net income is projected to reach $24.71 billion, translating to $2.01 per share, up from $1.89 per share reported in the same quarter last year.
Anticipated Challenges
During the earnings call, it is expected that analysts will raise questions regarding a recent U.S. District Court ruling, which has stated that Google has illegally maintained monopolies in the online advertising sector. Citi analysts have suggested the possibility that Google might spin off its advertising network in response to these legal challenges; however, they believe that the core business operations will remain largely unaffected.
Stock Performance Overview
As of the close of trading on Thursday, shares of Alphabet have declined by 20% in 2025, reflecting the volatility in the stock market. Notably, Friday saw the U.S. stock market closed in observance of Good Friday.