Alphabet Set to Report Q2 Results as Markets Watch AI Payoff

Google’s parent company Alphabet will release its second quarter earnings after markets close Wednesday, offering fresh insight into whether massive AI infrastructure spending is starting to pay off for major tech firms.

Wall Street Grows Wary of AI Bets

Enthusiasm for AI related stocks has cooled lately as investors weigh the sheer scale of spending on chips and data centers needed to run AI systems. Even so, tech firms keep insisting demand for computing power still outpaces what they can deliver. Google faces added pressure to keep pace with rivals on model releases, since any slowdown risks handing competitors an opening.

Questions Around Gemini Model Timeline

A recent Bloomberg report claimed Google pushed back the release of its Gemini 3.5 Pro model due to performance concerns relative to competing systems. Google disputed that framing, with a spokesperson telling reporters the company is shipping models quickly and cost-effectively, noting that 3.5 Pro, an upgraded Flash model, and other releases are currently in testing with partners alongside government engagement.

How Alphabet Stacks Up Against Peers

Shares of Alphabet have gained about 4% over the past three months, outpacing Amazon’s roughly flat performance, Meta’s near 6% drop, and Microsoft’s 5% decline, though the stock remains below its 52-week peak. Sentiment got an extra lift Monday after reports emerged that Google is building a new chip, internally called Frozen v2, meant to speed up processing for Gemini models.

Numbers Analysts Are Watching

Forecasts call for Alphabet to post earnings per share of $2.95 on revenue near $116.98 billion, with revenue excluding traffic acquisition costs expected around $101.5 billion, up from $2.31 EPS and $96.4 billion in revenue a year earlier. Remaining performance obligations are forecast to surpass $488.1 billion, up 351% year over year.