Google parent Alphabet to report Q2 earnings Tuesday with AI, ad spending front and center

Google Chief Executive Sundar Pichai speaks
during the tech titan's annual I/O developers conference on
May 14 in Mountain View, Calif.
 (Photo by GLENN CHAPMAN/AFP via Getty Images)

Google parent Alphabet (GOOG, GOOGL) will report its fiscal second quarter earnings after the bell on Tuesday, giving Wall Street a closer look at the state of the digital advertising market and whether generative AI hype is translating to revenue growth. The tech giant is coming off of an impressive first quarter during which it announced it initiated its first dividend of $0.20 per share and authorized stock repurchases of $70 billion.

Alphabet shares are up 30% year to date. Shares of rivals Microsoft (MSFT) and Amazon (AMZN) are up 18% and 22% year to date, respectively. All three companies are pouring money into building out their generative AI capabilities, spending lavishly on data centers capable of powering the AI models they offer via their cloud service platforms.

For the quarter, analysts are anticipating earnings per share of $1.85 on revenue of $84.35 billion, according to data compiled by Bloomberg. That would be a major jump from the same period last year when the company reported earnings per share of $1.44 on revenue of $74.6 billion.

By Daniel Howley.
Full story at Yahoo News.