Can Strong Search and Cloud Growth Drive GOOGL's Q3 Earnings?

Alphabet’s GOOGL third-quarter 2025 results, scheduled to be released on Oct. 29, are expected to have benefited from solid momentum in Search and Cloud businesses. The momentum in Search is expected to have driven advertising revenues in the to-be-reported quarter. The Cloud business is riding on strong demand for AI infrastructure and an expanding clientele 

The Zacks Consensus Estimate for Google’s advertising revenues is currently pegged at $72.45 billion, suggesting 10% growth from the figure reported in the year-ago quarter. The consensus mark for Google Cloud revenues is currently pegged at $14.66 billion, indicating 29% growth from the figure reported in the year-ago quarter. Both these segments are expected to have benefited from top-line growth. The Zacks Consensus Estimate for revenues is currently pegged at $84.71 billion, indicating 13.6% growth from the figure reported in the year-ago quarter.

Alphabet has an impressive earnings surprise history. GOOGL’s earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 15.96%. 
 

Alphabet Inc. Revenue (TTM)

Alphabet Inc. revenue-ttm | Alphabet Inc. Quote

Click here to know how Alphabet’s overall third-quarter 2025 results are likely to be.

GOOGL’s AI Push Aids Search & Cloud Businesses

GOOGL’s Search business is benefiting from AI infusion. Alphabet is leading the search domain with 90.4% market share, followed by Microsoft’s MSFT Bing, with 4.08% share, Yandex’s 1.65%, Yahoo!’s 1.46%, DuckDuckGo’s 0.87% and Baidu’s 0.75%, per the latest data from StatCounter.

Alphabet’s initiatives to deploy AI in Search are noteworthy. The integration of Generative AI (Gen AI) technology into the search engine has been benefiting Google Search. The Zacks Consensus Estimate for Search and other revenues is currently pegged at $55.09 billion, suggesting 11.5% growth over the figure reported in the year-ago quarter. 

Meanwhile, Alphabet has been growing rapidly in the booming cloud-computing market. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against the likes of Microsoft Azure and Amazon’s AMZN Amazon Web Services. According to Synergy Research Group data, Google Cloud, along with Microsoft, is gaining market share, while Amazon continues to lead with a 30% market share in the second quarter of 2025. Alphabet and Microsoft had 20% and 13% market share, respectively.

In the Cloud, Alphabet is benefiting from its partnership with NVIDIA NVDA. Google Cloud was the first cloud provider to offer NVIDIA’s B200 and GB200 Blackwell GPUs and will be offering its next-generation Vera Rubin GPUs. In fact, Alphabet and NVIDIA are collaborating to develop AI tools and transform industries including healthcare, manufacturing and energy. 

The Zacks Consensus Estimate for Cloud revenues is currently pegged at $14.66 billion, suggesting 29.1% growth over the figure reported in the year-ago quarter. 

Alphabet currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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