By Elias Schisgall
Alphabet, Google's parent company, is scheduled to release its fourth-quarter financial results after the bell on Wednesday. Here's what you need to know.
PROFIT: The technology company is expected to post a profit of $31.91 billion for the quarter, according to analysts polled by FactSet, compared with $26.54 billion a year earlier.
EARNINGS PER SHARE: Analysts expect earnings of $2.63 a share, according to FactSet, compared with $2.15 a share a year prior.
REVENUE: Revenue is expected to rise to $111.32 billion, up from $96.47 billion a year earlier.
The stock was recently trading down 1.7% to $339.01. Shares have risen 67% in the past 12 months.
WHAT TO WATCH:
-- Like nearly all technology companies, Alphabet has been racing to improve its artificial-intelligence capabilities, both internally and through the consumer-facing Gemini model. The company said late last year that it intends to acquire the wind and solar developer Intersect for $4.75 billion, and the acquisition, if approved, would make Alphabet the first company of its kind to own a power provider. Mizuho analysts cite tracking data showing substantial growth in both time per user on Gemini and aggregate desktop usage of Google.com, suggesting that the company is improving its competitive position in the consumer market. The integration of Gemini into advertising campaigns and the advertising stack is also boosting advertiser returns on investment, the analysts write, citing industry conversations. They say they will be looking for growth in query trends and the outlook for AI monetization in 2026 on the company's earnings call. But Morgan Stanley analyst Brian Nowak also says the AI business shouldn't detract from the company's core search model. "Search has gotta beat, and I think it has to be a pretty healthy beat as well," he says.
-- Alphabet's robotaxi startup, Waymo, just closed a $16 billion investment round, with Alphabet named as a majority investor. The funding, which values Waymo at $126 billion, comes as the company grows its weekly rides and prepares to expand into new cities including Minneapolis, New Orleans, Tampa, Fla., and Miami, where robotaxis began service late last month. Waymo has the potential to unlock substantial long-term value for Alphabet despite the stock's already-high valuation, Mizuho analysts write.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
February 03, 2026 14:35 ET (19:35 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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