Dear Google Stock Fans, Mark Your Calendars for October 29

Alphabet (GOOGL) will announce its third-quarter 2025 earnings on Wednesday, Oct. 29. Over the past three months, GOOGL stock has surged over 33%, powered by its solid first-half performance and the easing of regulatory scrutiny.

Alphabet’s core businesses are performing well, boosted by its rapid advances in artificial intelligence (AI). Google’s deep integration of AI across its products —from Search and Cloud to its advertising tools and productivity suite — continues to strengthen its competitive positioning.

Adding to the positives has been the easing of long-standing regulatory pressure. Since 2020, the U.S. Department of Justice has pursued an antitrust case accusing Google of monopolizing the online search and advertising markets, with some regulators even suggesting the company might be forced to divest its Chrome browser. That legal overhang has been a major source of uncertainty for investors.

However, a recent U.S. District Court ruling on remedies related to Google’s search practices delivered a broadly favorable outcome. The decision allows Google to retain ownership of Chrome and to continue entering into agreements with distribution partners to keep its products widely accessible.

With easing regulatory issues and AI-driven growth in full swing, Alphabet heads into its Q3 earnings with strong momentum.

AI Momentum to Drive Alphabet’s Q3, But…

Alphabet’s aggressive integration of AI across its products and platforms has given a significant boost to its Search, advertising, and Cloud businesses. Notably, Google Search could continue to see higher engagement and more frequent search activity as AI changes how users seek and consume information. The company’s management revealed during the second-quarter earnings call that AI Overviews, a feature that summarizes information with AI-generated responses, had reached more than 2 billion users worldwide. Meanwhile, Gemini, Alphabet’s AI-powered assistant, attracted over 450 million monthly active users and saw daily usage surge by more than 50% from the prior quarter.

These engagement gains have translated into solid financial results. In the second quarter, Google Search and related businesses generated $54.2 billion in revenue, a 12% increase year-over-year. This momentum will likely sustain in Q3. However, tough year-over-year comparisons could impact the segment’s growth rate. Notably, Google benefited from outsized advertising spend linked to the U.S. election cycle in late 2024, especially on YouTube. Additionally, the company faces tougher year-over-year comparisons in some of its strongest-performing verticals, including financial services.

Besides Search, Alphabet’s Q3 will likely benefit from the strength in its Cloud business. The division has emerged as a key growth pillar, capitalizing on the enterprise demand for AI-enabled tools and infrastructure. Cloud revenue climbed 32% in the second quarter to $13.6 billion, driven by the rapid adoption of the Google Cloud Platform’s advanced AI capabilities. Large-scale contracts exceeding $250 million have more than doubled from a year ago, and by mid-2025, Alphabet had already matched the number of billion-dollar cloud deals signed throughout all of 2024. This surge pushed the annualized run rate beyond $50 billion, with customer growth accelerating 28% quarter over quarter.

Alphabet is pouring billions into expanding its cloud and AI infrastructure to capitalize on demand. Despite accelerated buildouts, management expects the supply-demand balance to remain tight through 2026 as AI workloads scale, potentially limiting the segment’s growth rate.

On the bottom line front, analysts anticipate Alphabet will report third-quarter earnings of $2.27 per share, a 7.1% increase from a year earlier. The company’s recent track record has been solid. It has beaten consensus estimates in each of the past four quarters, delivering a 7.4% positive surprise in the most recent period.

In sum, Alphabet’s AI momentum will drive its top and bottom lines in Q3. However, tougher comparisons and a tight infrastructure environment could impact its growth rate.

The Bottom Line for Alphabet Stock

Alphabet enters its third-quarter earnings with solid momentum. The company’s focus on embedding AI across its ecosystem will continue to deepen user engagement and expand monetization opportunities. While challenging year-over-year comparisons and capacity constraints in AI infrastructure could temper growth, Alphabet’s underlying fundamentals remain exceptionally strong.

Wall Street analysts are bullish and keep a “Strong Buy” consensus rating on Alphabet stock ahead of Q3 earnings.

On the date of publication,

Amit Singh

did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.

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