This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) is set to report fourth-quarter 2025 results on Feb. 4, following a year where shares climbed roughly 68%. Investors are focused on the company’s AI initiatives and cloud growth, which are expected to drive revenue and profitability.
Wall Street expects Alphabet to report Q4 2025 revenue of about $111.3 billion (roughly +15% year-over-year) and adjusted EPS of about $2.64 (about +23% YoY), per consensus estimates.
Google Search remains a core revenue driver, with AI-powered features like AI Overviews and AI Mode expanding usage. AI Mode now reaches more than 75 million daily users across 40 languages, helping boost engagement.
The company is also monetizing its Gemini large language models. Apple (AAPL) recently signed a multiyear deal to integrate Gemini into Siri, adding a licensing revenue stream from its installed base of over 2 billion devices.
Google Cloud continues to see rapid growth, with third-quarter revenue up 34% year-over-year to $15.2 billion. Backlog jumped 82% to $155 billion, giving the unit strong revenue visibility. YouTube remains a key asset, expanding content partnerships with the BBC and streaming NFL games to millions of viewers.
The risks? There is legal scrutiny of your search hegemony and a bullock of cash on capitals, but with an eclectic portfolio of enterprises and a sweet $98.5 billion cash hoard, Alphabet can afford to be bendable until 2026.
