Alphabet is set to report its Q1 2025 earnings on Thursday after the market closes, and analysts remain optimistic about the tech giant’s resilience amidst economic challenges. According to Citi analysts, Google Search is expected to be one of the last platforms to feel the full impact of macroeconomic shifts, yet one of the first to bounce back. With the increasing adoption of artificial intelligence (AI) tools like Google’s AI Mode in Search, coupled with advancements in the Gemini large language model, Alphabet is positioned to experience growth.
AI-Driven Growth and the Alphabet Q1 2025 Earnings Outlook
Morgan Stanley also supports a positive outlook, citing the potential for innovation driven by AI across Google Search and YouTube platforms. This innovation is seen as a key factor in Alphabet’s long-term growth potential. Both Citi and Morgan Stanley have set their price targets for Alphabet at $195 and $185, respectively, with strong expectations for future performance.
Legal Challenges and Alphabet Q1 2025 Earnings: What’s Ahead?
As Alphabet gears up to report Q1 2025 earnings, analysts will likely raise questions about the company’s ongoing legal battles. A recent U.S. District Court ruling accused Google of illegally maintaining monopolies within the online advertising industry. Despite these challenges, Citi analysts believe that Alphabet’s core business will remain largely unaffected, even suggesting that Google might eventually spin off its ad network.
Looking ahead, Alphabet’s Q1 2025 earnings report is expected to show strong revenue growth, with projections of $89.22 billion in revenue, reflecting an 11% increase year-over-year. Net income is forecasted to rise to $24.71 billion, or $2.01 per share, up from $23.66 billion, or $1.89 per share, in the same quarter last year. However, Alphabet’s stock has experienced a decline in 2025, down about 20% so far.
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Source: www.investopedia.com
