Yahoo Finance's Dan Howley reports:
Google parent Alphabet (GOOG, GOOGL) will report its second quarter earnings after the bell on Wednesday as the company continues to ride the artificial intelligence wave.
Alphabet is one of the largest and most advanced companies in the space, thanks to its vast network of data centers and Gemini AI models. According to CEO Sundar Pichai, the company's AI Overview is already drawing 1.5 billion users, and its AI services are seeing 2x longer queries than its traditional search product.
According to BofA Global Research analyst Justin Post, potential positives for the quarter include increasing advertising spending, AI helping to power revenue, and strong cloud performance.
“We remain constructive on Google's ability to drive AI usage despite cautious sentiment, and see Gemini improvements, AI Mode integration in search and Workspace price increases as key YTD positives,” Post wrote in a note to investors.
For the quarter, Google is expected to post adjusted earnings per share of $2.17 on revenue excluding traffic acquisition costs (TAC) of $79.6 billion, an 11.6% jump versus the same period last year, when the company posted revenue of $71.3 billion, according to analyst consensus data from Bloomberg.
