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Alphabet CEO Sundar Pichai walks to lunch at the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, on July 12, 2023.

David Paul Morris | Bloomberg | Getty Images

Alphabet is scheduled to report fourth-quarter earnings Tuesday after the market closes.

Here’s what analysts are expecting:

  • Earnings: $1.59 per share, adjusted, according to LSEG, formerly known as Refinitiv.
  • Revenue: $85.33 billion, according to LSEG.
  • Google Cloud: $8.94 billion, according to StreetAccount.
  • YouTube ads: $9.21 billion, according to Street Account.
  • Traffic acquisition costs: $14.1 billion, according to StreetAccount.

Alphabet shares climbed to a record last week, joining Microsoft and Meta in rallying to fresh highs in January. Those climbs follow dramatic cost-cutting efforts that executives put in place in 2023.

Growth is accelerating, sparked by a rebound in the digital ad market and Google’s continuing dominance in mobile ads. But expansion remains meek by the company’s historic standards.

Analysts expect to see revenue growth of just more than 12% for the period that ended Dec. 31, from $76.05 billion in the same quarter a year earlier. That would be slightly above the growth rate for the third quarter and represent the strongest year-over-year increase since the first quarter of 2022. Between 2015 and the end of 2021, revenue growth reached at least 15% in all but three quarters.

YouTube is helping lift overall results, with revenue in that unit expected to jump 16% from $7.96 billion a year earlier. Google Cloud, which competes with Amazon Web Services and Microsoft Azure, remains a growth engine, with expansion expected to reach 22% from $7.32 billion.

“Our sense is retail and travel benefited Search spend in 4Q, while YouTube benefited from a stronger brand market,” analysts at KeyBanc Capital Markets wrote in a report on Jan. 28. They have the equivalent of a buy rating on the stock and increased their target price to $165 from $153.

Across Alphabet, CEO Sundar Pichai continues to focus on investments in artificial intelligence and embedding new generative AI tools into more of Google’s key products. To get there, Pichai has said the company has to make cuts elsewhere, which means more layoffs on top of 12,000 cuts last year, equal to roughly 6% of its full-time workforce.

In a memo earlier this month, Pichai warned employees that additional downsizing is coming this year, telling them that investing in its top priorities means “we have to make tough choices.” The company cut several hundred jobs in mid-January, affecting employees in areas including hardware and central engineering.

Wall Street has shown its confidence in Alphabet’s cost-cutting strategy as well as its ability to maintain its dominant internet business, even as generative AI tools such as OpenAI’s ChatGPT present consumers with new ways to access information. The stock price dipped in late 2022 and early 2023, in part due to concern that Google users would migrate elsewhere, but shares are up more than 9% this year after rallying 58% for all of last year. They closed Monday at $153.51.

In December, Google launched the large language model called Gemini, which it considers its largest and most capable AI model to date. The company is planning to license Gemini to customers through Google Cloud for them to use in their own applications. 

Tech investors will be focused on earnings this week from most of the top companies in the industry. Microsoft reports Tuesday, alongside Alphabet. Amazon, Apple and Meta are all scheduled to release quarterly results Thursday.

— CNBC’s Jennifer Elias contributed to this report.

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Apple reports third-quarter earnings after the bell

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Apple reports third-quarter earnings after the bell

Apple CEO Tim Cook attends the world premiere of “F1” at Times Square in New York on June 16, 2025.

Angela Weiss | AFP | Getty Images

Apple reports fiscal third-quarter earnings on Thursday after the bell.

The June quarter is typically Apple’s slowest of the year by sales, ahead of new device launches in September that typically spur the company’s biggest sales surge of the year driven in the December quarter.

Still, Apple is expected to report nearly $90 billion in overall sales during the period, which would be a 4% increase from last year. Analysts expect it to guide for 3% growth in the September quarter.

But there are lots of questions swirling around Apple, whose stock is down 16% so far in 2025.

The biggest question facing Apple is what it will say about tariffs. In May, Apple said it would have about $900 million in additional tariff costs in the June quarter, but that it couldn’t predict beyond that. Apple will likely update investors on how it sees tariffs affecting the September quarter, a key indicator for how President Donald Trump’s trade war is affecting American technology companies.

Apple also said in May that it would manufacture U.S.-bound iPhones in India to avoid tariffs on Chinese imports. But the company’s move upset Trump, who said after Apple’s last earnings call that he didn’t want the iPhone maker building in India. India is in line to receive a 25% tariff as soon as Friday. Apple CEO Tim Cook may update investors on its India pivot on Thursday.

The company held its annual Worldwide Developers Conference in June, in which it announced major updates to its software for iPhones and other devices. Apple did not, however, announce major new artificial intelligence products or initiatives, disappointing some analysts. However, some investors believe Apple’s AI stumbles aren’t expected to show up in its results for years.

On the brighter side, Cook will likely shout out the movie “F1,” which is Apple Original Films’ first summer blockbuster and passed $500 million at the global box office last weekend.

Here’s how Apple is expected to do in the June quarter, per LSEG consensus estimates:

  • Earnings per share: $1.43
  • Revenue: $89.54 billion

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Amazon earnings primer: Why AI and tariffs are key to the second quarter

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Amazon earnings primer: Why AI and tariffs are key to the second quarter

Amazon CEO Andy Jassy attends the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 9, 2025.

Kevin Dietsch | Getty Images

Amazon will report second-quarter results after the market close Thursday.

Here’s what analysts surveyed by LSEG are expecting:

  • Earnings per share: $1.33
  • Revenue: $162.1 billion

Wall Street is also looking at other key revenue metrics:

  • Amazon Web Services: $30.8 billion, according to StreetAccount
  • Advertising: $14.99 billion, according to StreetAccount

The company spooked investors in May when it warned in its earnings report that “tariff and trade policies,” as well as “recessionary fears,” could weigh on second-quarter results.

Amazon CEO Andy Jassy said at the time that “none of us knows exactly where tariffs will settle or when.” Jassy later said the company hasn’t seen “any attenuation of demand at this point” due to tariffs and that Amazon has taken steps to keep prices steady on its site.

President Donald Trump‘s unpredictable tariff agenda primarily poses a threat to Amazon’s sprawling e-commerce business, which accounts for the bulk of its sales. The core online stores unit is expected to post $58.98 billion in sales, according to StreetAccount. Wall Street is projecting seller services revenue to reach $38.7 billion during the quarter.

Several analysts said the tariff and geopolitical backdrop for Amazon has become more manageable in recent months, which is one of several reasons they’re optimistic about the company’s second-quarter report.

“Through the quarter, the US consumer backdrop has remained supportive as tariff concerns wane and consumers continue to spend,” analysts at Deutsche Bank wrote in a July 22 research note. The firm has a buy rating on Amazon’s stock.

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Trump’s tariffs may be giving Amazon a boost, to some extent.

The Deutsche analysts said it’s “become abundantly clear” that Amazon has gained a greater share of the U.S. e-commerce market in the face of diminished competition from ultra-cheap Chinese online retailers Shein and Temu, which is owned by PDD Holdings.

Both companies have struggled to preserve their grip on American shoppers after the Trump administration ended de minimis, a trade exemption that allowed low-value shipments to enter the country duty-free, and instituted higher tariffs on Chinese imports.

Amazon’s third-quarter guidance will give a view into whether the company expects tariff risks to continue. Analysts are projecting revenue to reach $173.3 billion in the current quarter.

Outside of retail, investors will be keeping a close eye on Amazon’s cloud business. Revenue at AWS in the first quarter grew 17%, which fell short of analysts’ estimates and was the slowest growth in a year. Analysts are projecting about the same year-over-year growth for the second period.

Jassy said in May that the cloud business would have grown faster if it weren’t for capacity constraints caused by shortages of AI chips and other components.

Amazon has pledged to spend up to $100 billion this year, largely on AI-related investments for AWS. Wall Street will be paying attention to whether Amazon reaffirms or boosts that number. AI and cloud competitor Google last week upped its capital spend to $85 billion this year as part of its second-quarter earnings.

Like other major tech companies, Amazon has been laser-focused on AI. During the quarter, Amazon began releasing an AI-upgraded version of its Alexa voice assistant and it launched a new agentic AI group in its skunkworks research and development unit.

The technology is also transforming Amazon’s workforce. In a June note to staff, Jassy said the company’s corporate employee base will shrink in the coming years as it adopts more generative AI tools and agents.

“It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce,” Jassy wrote.

Amazon shares have lagged those of its tech peers this year despite its heavy investments in AI. Amazon’s stock is up 5.4% year to date, while shares of Meta and Microsoft have climbed roughly 20% over the same stretch. Apple, which has struggled with its AI development, is down about 15.5% so far this year.

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Arm stock tumbles on chip designer’s muted profit forecast

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Arm stock tumbles on chip designer's muted profit forecast

The logo of semiconductor design firm Arm on a chip.

Jakub Porzycki | Nurphoto | Getty Images

Shares of Arm Holdings plunged more than 13% on Thursday after the chip designer offered muted guidance for earnings.

Second-quarter adjusted earnings will be between 29 cents and 37 cents per share, Arm said late Wednesday. Wall Street had projected 35 cents per share.

The company forecast second-quarter revenue of $1.01 billion to $1.11 billion, which was in line with consensus estimates of $1.05 billion.

The concerning outlook was amplified by commentary from Arm CEO Rene Haas, who indicated the company is considering designing its own processors. Arm has made its name selling the architecture behind the chips powering devices made by the likes of Microsoft and Amazon.

“We’re looking now at the viability of moving beyond the current platform to additional subsystems, chiplets or possibly full solutions,” Haas said.

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The disclosure left investors “with more questions than answers,” Wells Fargo analysts wrote in a Thursday research note.

By developing its own chips, the company’s cost structure will likely undergo a “major change,” Needham analysts wrote.

“While we view ARM’s transition from selling process core IP to selling CSS was largely successful, as evidenced in above-market royalty revenue growth, the next transition appears to be a much bigger leap, which will likely come with a bigger price,” the analysts added.

For the fiscal first-quarter, the company posted adjusted earnings per share of 35 cents on revenue of $1.05 billion. Analysts were expecting earnings of 35 cents and revenue $1.06 billion.

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