Report: Google will report revenue of about $86.4 billion for the third quarter
Google parent Alphabet expects $86.4 billion in Q3 earnings, driven by strong AI momentum and growth in cloud services.
Google’s parent company, Alphabet, is set to share its third-quarter earnings next week, and analysts expect some impressive numbers. They predict that the company will report revenues of around $86.4 billion for the third quarter, according to analyst estimates compiled by FactSet. This follows a strong performance in the second quarter, where Google exceeded expectations thanks to its advances in artificial intelligence (AI).
For the upcoming report, analysts estimate that Google’s revenues from the U.S. will be around $40.6 billion, while the rest of the world is expected to contribute about $45 billion. The earnings per share (EPS) is projected to be $1.84. In the previous quarter, Google brought in nearly $85 billion, surpassing Wall Street’s predictions by about $640 million.
This represented a 14% increase in revenue compared to the same period last year. Notably, Google Cloud crossed the $10 billion mark in quarterly revenue for the first time and also achieved over $1 billion in operating profit.
Google CEO Sundar Pichai highlighted the company’s success in search and cloud services, emphasizing their ongoing work in AI. He stated, “We are innovating at every layer of the AI stack.” This innovation includes advancements in large language models (LLMs), which are AI systems designed to understand and generate human-like text.
Recently, Google has been improving its AI models to mimic human reasoning. This means they can tackle complex problems by breaking them down into smaller, more manageable steps, much like how people think. This approach is known as “chain-of-thought prompting.” In July, Google also released a faster and more efficient AI model called 1.5 Flash for the free version of its Gemini chatbot.
Across-the-board, the upcoming earnings report is highly anticipated, especially with the recent focus on AI advancements and the positive trends in revenue. Investors and analysts will be looking closely at how these developments impact Google’s financial performance.
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