Alphabet (GOOGL) is scheduled to announce its results for the fourth quarter of 2025 on Wednesday, February 4, and the options market is expecting a volatile reaction. Based on options pricing, traders are expecting a 6.18% move in either direction in GOOGL stock following its Q4 2025 earnings. This implied move is higher than the stock’s average post-earnings move (in absolute terms) of 3.13% over the past four quarters.
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What to Watch in Alphabet’s Earnings
For Alphabet, investors will focus first on advertising growth, especially at Google Search and YouTube. After recent strength in Search ads and a gradual rebound in YouTube ad revenue, markets want to see whether ad demand holds up and if YouTube continues to gain share from short-form video rivals.
Another key area is AI investment and monetization, including Alphabet’s use of its in-house TPUs (Tensor Processing Units). Alphabet has been rolling out Gemini-powered features across Search, Workspace, and Cloud, while using TPUs to lower AI computing costs. Investors will look for updates on TPU deployment, AI product adoption, and whether AI tools are starting to drive revenue without sharply raising expenses.
Next, attention will turn to Google Cloud growth and profitability. After expanding partnerships with enterprise customers, including a deal with NextEra Energy (NEE) to build out data center capacity and accelerate AI growth, markets will want to see if cloud revenue stays strong and whether operating profits continue to improve.
Finally, investors will watch margins, costs, and guidance. With heavy spending on AI infrastructure and data centers, markets will look for signs of cost discipline and clear guidance on how AI investments could affect earnings in the year ahead.
Analysts’ Expectations for GOOGL’s Q4 Results
Wall Street expects Alphabet to report Q4 2025 earnings per share (EPS) of $2.64, reflecting 23% year-over-year growth. Meanwhile, revenue is estimated to rise 15% to $111.29 billion.
What Is the Target Price for Alphabet Stock?
According to TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 23 Buys and six Holds assigned in the last three months. The average Google stock price target is $352.46, suggesting a potential upside of 4.28% from the current level.
