Alphabet Q2 Preview: Stock on Sale? Analyst Says ‘Attractive Entry’ Ahead of Earnings

Technology giant Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) is one of the larger companies to report quarterly financial results this week with an earnings report coming Wednesday after market close.

Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.

Alphabet Q2 Earnings Estimates

Analysts expect Alphabet to report second-quarter revenue of $113.6 billion, up from $96.4 billion in last year’s second quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in five straight quarters and in nine of the last 10 overall.

Analysts expect Alphabet to report second-quarter earnings per share of $2.87, up from $2.31 in last year’s second quarter.

The company has beaten analyst estimates for earnings per share in 13 straight quarters.

What Experts are Saying

A recent delay of Gemini raises questions ahead of earnings, Guggenheim analyst Michael Morris said in a new investor note.

The analyst maintains a Buy rating with a price target of $450 ahead of earnings and sees a potential buying point for investors.

"Competitive noise creates attractive entry for full-stack AI leader," Morris said.

The analyst highlights Google Search, YouTube and cloud, return on capital, competition and capital spending as areas to watch in the financials and management commentary.

The release of Moonshot AI’s Kimi K3 product is viewed as a short-term headwind for Alphabet and a pullback in the stock price could be an "attractive entry point," the analyst said.

Freedom Capital Markets Chief Market Strategist Jay Woods highlights Alphabet stock trading higher after four of the last five earnings reports, with an average move of +/- 4.8.

Alphabet is the top performing Magnificent Seven stock over the last 52 weeks and is second in year-to-date gains to Apple in 2026, Woods highlights in a weekly newsletter.

The delay of Gemini is worth watching according to the market expert, making it possible that Alphabet is "losing their edge" to rivals like Anthropic and OpenAI.

"Watch for updates on Gemini and if the company’s massive AI spending continues," Woods said. "With billions being poured into chips, data centers, and Gemini development, Wall Street wants evidence that AI is driving growth rather than simply driving expenses."

Woods highlighted Google Search and Cloud revenue as two areas to watch to see if Alphabet’s AI bets "are paying off."

The market expert said that if the stock gains momentum after earnings, a run to all-time highs over the coming quarter "is quite likely."

Here are recent analyst ratings for Alphabet stock and their price targets:

• BMO Capital: Maintained Outperform rating, raised price target from $435 to $455
• Wedbush: Assumed with Outperform rating, no price target
• UBS: Maintained Neutral rating, lowered price target from $410 to $400
• KeyBanc: Maintained Overweight rating, raised price target from $425 to $445
• Wells Fargo: Maintained Overweight rating, lowered price target from $435 to $416

Key Items to Watch

Key attention will fall on the company’s update on Gemini and its latest AI initiatives, especially after recent reports of delays.

The company has been consistently beating analyst estimates and investors and analysts likely have another beat priced into shares. Any weakness in financials or weak comments on future guidance could spook investors.

Services and Cloud could be two key areas to watch with growth of 16% and 63% year-over-year, respectively, in the first quarter.

The first quarter was called the company’s strongest quarter ever for consumer AI plans. The company also highlighted paid subscriptions hitting 350 million, with YouTube cited as a key driver.

Alphabet’s earnings could create volatility across several technology sectors and among tech stocks overall. The stock is one of two Magnificent Seven stocks reporting this week, with Tesla being the other.

The company is one of the newest members of the Dow Jones Industrial Average, with Alphabet stock the eighth largest holding in the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) at 4.03% of assets.

Alphabet is also one of the largest members of the SPDR S&P 500 ETF (NYSE:SPY), with the two classes (GOOG, GOOGL) making up 5.51% of assets combined.

In the Invesco QQQ Trust (NASDAQ:QQQ), which tracks the Nasdaq 100, the two Alphabet classes rank seventh and eighth and have a combined 6.50% of assets in the ETF.

Alphabet Stock Price Action

Alphabet stock is down 0.8% to $348.34 on Tuesday versus a 52-week trading range of $187.46 to $408.61. Alphabet stock is up 10.5% year-to-date in 2026 and up over 80% in the last 52 weeks.

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