TLDR
- Alphabet reports Q2 earnings on July 22, with Wall Street expecting EPS of $2.88 and revenue of $117 billion
- GOOGL stock is up 13% year-to-date and 94% over the past year, currently trading around $354
- Google Cloud revenue surged 60% to $20 billion in Q1, with backlog nearly doubling to over $400 billion
- Bank of America has a Buy rating with a $430 price target, citing strong cloud demand and AI growth
- Wall Street consensus is Strong Buy — 29 Buys and 5 Holds — with an average price target of $435.78
Alphabet heads into its July 22 earnings report with strong momentum. GOOGL stock trades around $354, up 13% year-to-date and 94% over the past 12 months. Wall Street expects Q2 revenue of $117 billion, up 21.3% year-over-year, and EPS of $2.88, reflecting roughly 25% growth compared to the same period last year.
The stock carries a market cap of approximately $4.3 trillion and trades at 25x forward earnings estimates.
Google advertising remains the engine of the business. In Q1, ad revenue topped $77 billion, making up 70% of total revenue — and that figure grew 15% year-over-year. Advertisers keep coming back because Google Search dominates with over 90% global market share.
AI has pushed Search queries to a record level in the most recent quarter. Alphabet’s own large language model, Gemini, powers Search improvements, acts as an AI assistant for users, and serves Google Cloud customers.
Gemini is gaining ground in the AI assistant race. ChatGPT still leads with 46.4% market share, but Gemini sits in second place at 27.7%, according to Sensor Tower’s State of AI Report for 2026.
Google Cloud Drives Optimism
Cloud is where the growth story really heats up. Google Cloud revenue jumped over 60% in Q1 to $20 billion, and backlog nearly doubled quarter-over-quarter to more than $400 billion. Alphabet said AI solutions were the biggest driver of cloud revenue in the quarter.
Bank of America analyst Justin Post reiterated a Buy rating ahead of earnings, with a price target of $430. He’s estimating Q2 revenue of $102.1 billion and GAAP EPS of $8.38 — a number boosted by an expected $80 billion benefit to operating income from the revaluation of Alphabet’s Anthropic stake.
Post also raised his Cloud growth estimate to 70%, pointing to solid demand indicators and a backlog that implies at least $230 billion in revenue over the next eight quarters.
Ownership and Analyst Sentiment
Vanguard holds the largest institutional stake in GOOGL at 7.78%, followed by Vanguard Index Funds at 6.85%. Public companies and individual investors hold a combined 49.18% of the company.
Wall Street’s consensus heading into earnings is Strong Buy — 29 analysts rate it a Buy, five say Hold. The average price target of $435.78 implies around 23% upside from current levels.
Signals from elsewhere in the AI ecosystem are encouraging. ASML, the chip equipment maker, raised its annual sales forecast for a second time this year, pointing to sustained demand for AI chips.
Alphabet reports after the closing bell on July 22.
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