Mountain View, California-based Alphabet Inc. (GOOG) is a multinational technology conglomerate holding company offering various products and platforms. With a market cap of $2.2 trillion, GOOG provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products. The internet media giant is expected to announce its fiscal second-quarter earnings for 2025on Tuesday, Jul. 22.

Ahead of the event, analysts expect GOOG to report a profit of $2.12 per share on a diluted basis, up 12.2% from $1.89 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.

For the full year, analysts expect GOOG to report EPS of $9.53, up 18.5% from $8.04 in fiscal 2024. Its EPS is expected to rise 6.8% year over year to $10.18 in fiscal 2026.

GOOG stock has underperformed the S&P 500 Index’s ($SPX) 13.2% gains over the past 52 weeks, with shares down 4.1% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR ETF’s (XLC) 26.3% uptick over the same time frame.

GOOG faces significant challenges, including potential U.S. antitrust actions that may force asset sales, such as the Chrome browser. The rise of generative AI applications also poses a threat, although Google's popularity and integration of AI into its search business could help retain users. Additionally, the company is dealing with regulatory hurdles, including a U.K. proposal for choice screens to switch search services and AI assistants, as well as an EU fine for stifling search engine competition via Android. GOOG is also navigating through intensifying competition from Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN) in cloud computing, which could further impact its performance.

On Apr. 24, GOOG shares closed up more than 2% after reporting its Q1 results. Its revenue increased 12% year over year to $90.2 billion. The company’s EPS came in at $2.81, up 48.7% from the year-ago quarter. 

Analysts’ consensus opinion on GOOG stock is bullish, with a “Strong Buy” rating overall. Out of 54 analysts covering the stock, 42 advise a “Strong Buy” rating, four suggest a “Moderate Buy,” and eight give a “Hold.” GOOG’s average analyst price target is $201.19, indicating a potential upside of 13.7% from the current levels.