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Google-parent AlphabetGOOGL will report earnings late Wednesday. The tech giant's cloud computing and advertising growth could frame expectations for Amazon.comAMZN, Meta PlatformsMETA and MicrosoftMSFT. While Google stock jumped on stellar Q1 results, it has now round-tripped and is trading near 349, up roughly 11% in 2026.
For Alphabet's second quarter, Wall Street analysts model EPS of $2.88, up 25%, with revenue rising 21% to $117.1 billion. Results for Google's core internet search business, including "AI Mode" and "AI Overviews" monetization, will be key. Analysts polled by Visible Alpha project internet advertising search revenue of $63.3 billion, up 16.8%.
On the stock market today, Google stock edged up a fraction to near 348.
Expectations are running high for the Google Cloud computing business. Analysts predict cloud revenue growth of 65% to $22.47 billion, up from 63% growth in Q1.
Google Stock: Cloud Growth Key
The size of a cloud revenue beat and cloud order backlog growth could move Google stock. Buy-side analysts (institutional investors) are looking for cloud revenue growth of at least 70%. Cloud revenue is expected to include sales of Google's TPU artificial intelligence chips to outside customers such as Anthropic.
In Q1, Google's cloud computing backlog boomed to $460 billion from $240 billion in the December quarter. The backlog is converted into realized revenue as new data centers come online and crunch artificial intelligence-related workloads — training AI models and processing AI apps.
Also, analysts will look for an update on capital spending for 2027. Google has cautioned that 2027 capital spending could rise significantly. For 2026, Google forecast capital spending in a range of $180 billion to $190 billion, up over 100%.
Meanwhile, analysts will look for an update on Google's Gemini AI models. Google is behind schedule on delivering Gemini 3.5 Pro, its most powerful flagship artificial intelligence model, as rivals gain momentum. Anthropic recently released its Fable models, earlier code-named Mythos. Meanwhile, OpenAI has launched GPT-5.6 Sol, its most capable model ever, in limited previews.
Google management could be asked whether enterprise customers are switching from Gemini to lower cost, Chinese open-source models.
Google Stock Technical Ratings
Meanwhile, Microsoft and Meta report earnings on July 28, followed by Amazon on July 29. For all the cloud "hyperscalers," a key issue for investors is whether they're building more AI data center capacity than they'll need.
Google stock holds an IBD Composite Rating of 83 out of a best-possible 99, according to IBD Stock Checkup. The Composite Rating combines five IBD ratings of a stock's fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
But Google stock holds an Accumulation/Distribution Rating of E, according to IBD MarketSurge. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading to discern trends in buying and selling by large institutional investors. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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