Wall Street analysts expect Alphabet (GOOGL) to report quarterly EPS of $2.94 per share, up 2.4% year over year, on revenue of $111.64 billion, up 27.6%. The consensus EPS estimate was revised up 1.4% over the past 30 days. Analysts project Google advertising revenue at $83.52 billion (up 12.6%), Google Cloud at $29.16 billion (up 92.4%), and YouTube ads at $11.34 billion (up 10.6%). The article notes that trends in earnings estimate revisions have shown a robust correlation with short-term stock price performance.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
GOOGLearningsadvertisingcloud computing
Open a keyword to see other news on the same topic.
Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.3T |
| Close on 10/22/2026 | 324.22 |
| Change that session | -3.15% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Pre-Q3 Earnings: Is Alphabet Stock a Portfolio Must-Have?
Alphabet (GOOGL) is set to report third-quarter 2026 results on October 28. The Zacks Consensus Estimate calls for earnings of $2.94 per share, up 2.44% year over year, and revenue of $111.64 billion, implying growth of 27.63%; Alphabet has beaten earnings estimates in each of the last four quarters, with an average surprise of 86.65%. Cloud revenue surged 82% year over year to $24.77 billion in the second quarter, with cloud backlog reaching $514 billion, while Search & Other rose 17% to $63.27 billion and YouTube advertising grew 13% to $11.06 billion. Gemini API usage reached about 22 billion tokens per minute, and the Gemini app has 950 million monthly active users. The article also flags possible margin pressure from higher depreciation, energy costs, data center operating costs and AI-related hiring.
- Alphabet Poised for Strong Third-Quarter Search Revenue Growth, Deutsche Bank Says
- The $500 Billion Question: Can Google Cloud’s Massive AI Backlog Outrun Its Mind-Boggling CapEx Boom on Oct. 28?
Alphabet (GOOGL, GOOG) reports third-quarter results after the close on Wednesday, October 28. Google Cloud’s backlog stands at $514 billion, and its 2026 CapEx guidance is $195–205 billion. Last quarter, Google Cloud revenue rose 82% to $24.77 billion and its operating margin widened to 35.6% from 20.7%, but CapEx rose 100% to $44.92 billion and free cash flow was negative $5.86 billion, the first time ever. To fund the spending, Alphabet raised about $70 billion in equity and debt and suspended buybacks. The article says the key question is how quickly the backlog turns into revenue and cash as CapEx keeps rising.
- Alphabet Solves the AI Infrastructure Bottlenecks Competitors Can’t Buy with Debt
The author argues Alphabet (NASDAQ:GOOGL) has an edge by owning its TPU chips, power, private fiber networks and multimodal training data, while rivals must rent them. Google Cloud revenue in Q2 2026 rose 82% to $24.77 billion, and operating income climbed 30.38% to $40.77 billion. The article cites a trailing P/E of 14, debt-to-equity of 0.14, and a 5% quarterly dividend increase to $0.22, and compares these with higher P/E ratios at Microsoft and Amazon. Risks noted include Q2 capital expenditures of $44.92 billion, which pushed free cash flow to -$5.86 billion, long-term debt rising to $98.2 billion, and $49.6 billion raised in equity. After the stock fell 7.16% over the week to $324.22, the author says they bought more shares.
- One Reason Alphabet Stock Looks Better Than Its Price
Alphabet (GOOGL) shares fell 1.2% over the six months to October 21, 2026, while the S&P 500 gained 9.3%, even as Google Cloud grew quickly: second-quarter fiscal 2026 revenue reached $24.8 billion, up 82%, and operating margin rose to 35.6% from 20.7%. Cloud's backlog reached $514 billion at the end of June 2026. However, Alphabet spent $44.9 billion on capital projects in the quarter, more than the $39.1 billion of operating cash flow, and raised its 2026 capex guidance to $195–205 billion from $180–190 billion. The main risks cited are limited capacity and costs rising faster than backlog converts to revenue, with most revenue from TPU system deals expected in 2027. Alphabet's third-quarter report is expected on October 28, 2026.
- Will Alphabet Stock Soar After Oct. 28? History Offers an Answer That’s Strikingly Clear.
Alphabet is scheduled to report third-quarter earnings after the market closes on Oct. 28, and the article notes the stock advanced in the two weeks following three of its last four quarterly reports. Google advertising made up 68% of the company's $119 billion second-quarter revenue, while Google Cloud revenue rose 82% to more than $24 billion on enterprise AI demand. Capital expenditures were about $44 billion in the quarter, with 60% going to servers and 40% to data centers and networking. Investors have worried about rising capex, and Alphabet, Amazon, Microsoft and Meta plan to spend more than $700 billion this year on AI. The stock has climbed about 7% so far this year.
Related markets
Latest news
- The Nasdaq Just Had Its Worst Day in 4 Months. Here's the Level That Would Signal a Correction, and What History Says Investors Can Do About It.
The Nasdaq Composite fell 2.6% on Oct. 22 to close at 26,008.86, its largest drop since a 4.2% decline on June 5. A correction, a fall of at least 10% from the highs, would require a further 4.1% drop to below 24,950, which would mark the third correction this year. Corrections have been occurring more frequently, but recoveries have generally been quick, with the 2022 to early 2024 slump the main exception. The article attributes the choppier market to fast-spreading information, easy trading, and concentration in AI-linked mega-cap stocks that make up much of the S&P 500. It says holding quality companies, index funds, or ETFs is the simplest way to endure corrections, and suggests reviewing whether large positions are highly correlated.
- Oklo Is Down 61% This Year Despite a Real Technical Milestone. Here's the Disconnect Between the Stock and the Science.
Oklo stock has fallen more than 60% this year, and the VanEck Uranium and Nuclear ETF (NLR) has dropped 25%, as Wall Street has grown less confident about nuclear stocks. Oklo's AI power opportunity, once its main tailwind, has become a headwind as investors question whether spending on AI infrastructure will deliver big returns. The company has reached technical milestones, including first criticality of its Groves test reactor in Texas in August, NRC approval of principal design criteria for its Aurora powerhouse in May, and DOE approval of a preliminary safety analysis for a reactor in Idaho. However, Oklo remains unprofitable, is still burning cash, and lacks regulatory approval for Aurora, whose planned 2028 launch is not guaranteed given its history of delays. The author suggests a small speculative position may fit some investors, while less aggressive investors may prefer other growth stocks.
- Stock Market Sell-Off: History Says This Is the Best Move to Make Right Now
The Nasdaq Composite has fallen 7.6% from its early October highs, with AI stocks among the main drags on the index. The author argues against panic selling, noting that the Fidelity NASDAQ Composite Index ETF (ONEQ) fell 33% in 2022 before soaring 44.6% in 2024, while investors who moved to cash missed that rebound. As of Oct. 23, ONEQ had gained 150% since the end of 2022. The author says the effective approach is to stay the course, keep regular investments going so each contribution buys more at lower prices, and treat a pullback as a chance to add quality stocks whose declines are unrelated to their fundamentals. The article cites John Bogle's “stay the course” philosophy, which Warren Buffett and Benjamin Graham would also agree with.
- Vertex Pharmaceuticals Gets 96% of Product Sales From Treatments for 1 Disease. Here's Why That's About to Change.
Vertex Pharmaceuticals' cystic fibrosis (CF) therapies brought in about $3.2 billion of its $3.33 billion second-quarter revenue, roughly 96%. The company expects $500 million or more in 2026 sales from Journavx and Casgevy, and recently reported positive Phase 2b data for inaxaplin in APOL1-mediated kidney disease, with reduced urine protein and no serious side effects. Q2 revenue rose 12% year over year, EPS reached $4.31, and full-year revenue guidance was raised to $13.1 billion to $13.2 billion, while the $10 billion Crinetics Pharmaceuticals acquisition closed on Sept. 1. Shares are up more than 15% so far this year, and the article suggests this gain does not appear to come only from hype.
- More than 400,000 protest across France, challenging Macron as Paris clashes erupt
Mass protests across France over school funding and living costs drew 410,000 people according to the Interior Ministry and nearly 800,000 according to the CGT union, with clashes in Paris ending a march that had begun peacefully. Police used tear gas and water cannons near Porte de Vincennes, where 64 people were arrested, and similar clashes were reported in Marseille, Lyon, Strasbourg, Nice and Nantes. Authorities banned rallies in cities including Lyon, Nice and Montpellier, which unions criticized as violations of freedom of expression. Marseille police counted 17,000 protesters against 100,000 by the CGT, and Toulouse authorities counted 26,500, while thousands marched in Orléans against the far right as Marine Le Pen's National Rally held a congress there. Macron's popularity is at its lowest since he took office in 2017, and Interior Minister Laurent Nuñez acknowledged police lost control in some cities during the unrest, which damaged or looted some 3,000 shops.
- More than 400 , 000 protest across France , challenging Macron as Paris clashes erupt
More than 400,000 people rallied across France on Saturday over school funding and soaring living costs, challenging President Emmanuel Macron, and the Paris march ended in clashes in which masked protesters hurled objects and fireworks at police, who responded with tear gas, sound grenades and water cannons. The government said police made nearly 1,000 arrests, a figure expected to rise. The Interior Ministry put turnout at 410,000, below the 550,000 of the previous weekend, while the CGT union estimated nearly 800,000. The movement began as a protest over staff shortages at one high school and spread into a national demand for education funding and help with fuel and other costs, testing Macron in his final months before May's election. Interior Minister Laurent Nuñez said 70,000 officers helped prevent a repeat of the previous weekend's widespread looting.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.