Alphabet CEO Sundar Pichai speaks at a Google I/O event in Mountain View, Calif., Tuesday, May 20, 2025.
Jeff Chiu | AP
Alphabet is set to report its second-quarter earnings after the bell Wednesday.
Here’s what analysts polled by LSEG are expecting:
Revenue: $93.94 billion
Earnings per share: $2.18
Wall Street is also watching these numbers in the report:
YouTube advertising revenue: $9.56 billion, according to StreetAccount
Google Cloud revenue: $13.11 billion, according to StreetAccount
Traffic acquisition costs (TAC): $14.18 billion, according to StreetAccount
Alphabet is among the megacaps expected to be a major driver of earnings growth during the second-quarter earnings season. Wall Street is anticipating the search giant to report a 10.9% increase in revenue and 15% growth in earnings per share.
Shares of Alphabet haven’t moved much this year, lagging the other Magnificent Seven stocks and the S&P 500. Investors are primarily concerned about the rise of artificial intelligence chatbots, which could impact Google’s ability to remain competitive in search.
During the second quarter, the search giant rolled out a number of new AI products.
At its annual Google I/O conference in May, Google announced a new subscription tier, called “Google AI Ultra,” that offers access to the company’s “cutting edge” AI features for $249.99 per month. Google also unveiled its return to the smart glasses market with a $150 million partnership with Warby Parker — the two companies said they plan to launch a series of smart glasses as soon as next year.
Google in May also announced a venture fund to invest in AI startups. As part of the “AI Futures Fund,” eligible startups will receive Googleinvestment, early access to AI models, and hands-on support from Google researchers, engineers and go-to-market specialists. They also get credits to use on Google Cloud.
Additionally in May, Google began testing the placement of its “AI Mode” product on its home page, directly beneath the Google search.
Earlier this month, OpenAI added Google to its list of suppliers, saying it expects to use the search company’s cloud infrastructure for its popular ChatGPT service. The announcement represented a win for Google, whose cloud unit is younger and smaller than those of Amazon and Microsoft.
Google made a splash in the AI talent wars, announcing it would bring in Windsurf CEO Varun Mohan and other top researchers at the artificial intelligence coding startup as part of a $2.4 billion deal that also includes licensing the company’s technology.
Internally, Google also made a number of personnel changes during the quarter.
The company added the new role of chief AI architect when it elevated Koray Kavukcuoglu from his position as Google DeepMind’s chief technology officer in June.
Google also made more workforce reductions by offering buyouts to U.S.-based employees across several of its divisions, including search, ads and commerce.
Alphabet made several strides with Waymo, its self-driving car unit, during the quarter.
Waymo reached 100 million “real world, fully autonomous miles” driven on public roads, the company said last week. Waymo also announced expansions into new markets.
In June, Waymo announced plans to drive vehicles manually in New York, marking the first step toward potentially cracking the largest U.S. city. In July, the company said it will do limited testing in Philadelphia and it began offering accounts for teens ages 14 to 17, starting in Phoenix.
The company also endured some less-flattering optics during the quarter.
In June, Google’s cloud suffered significant global outages knocking down or disrupting dozens of large internet services, including OpenAI and Shopify, among others.
Chris Martin of Coldplay performs live at San Siro Stadium, Milan, Italy, in July 2017.
Mairo Cinquetti | NurPhoto | Getty Images
Days after Astronomer CEO Andy Byron resigned from the tech startup, the HR exec who was with him at the infamous Coldplay concert has left as well.
“Kristin Cabot is no longer with Astronomer, she has resigned,” a company spokesperson wrote in an email to CNBC Thursday. Cabot was the company’s chief people officer.
Cabot and Byron, who is married with children, were shown in an intimate moment on the ‘kiss cam’ at a recent Coldplay show in Boston, and immediately hid when they saw their faces on the big screen. Lead singer Chris Martin said, “Either they’re having an affair or they’re just very shy.” An attendee’s video of the incident went viral.
Byron resigned from the company on Saturday. Both Cabot and Byron have been removed the company’s leadership team webpage.
Pete DeJoy, Astronomer’s interim CEO, wrote in a post earlier this week that recent and unexpected national attention has turned the company into “a household name.”
In May, the New York-based company, which commercializes open source software, announced a $93 million investment round led by Bain Ventures and other investors, including Salesforce Ventures.
Elon Musk‘s satellite internet service Starlink said it had a “network outage” on Thursday. The company said it was working on a solution.
There were more than 60,000 reports of an outage on Downdetector, a site that logs issues.
Starlink is owned and operated by SpaceX, which is also run by Musk.
Musk apologized for the outage on his social media platform X and said, “Service will be restored shortly.”
Musk posted earlier Thursday that the company’s direct-to-cell-phone service was “growing fast” following the announcement that T-Mobile‘s Starlink-powered satellite service was available to the public.
T-Mobile said the T-Satellite service was built to keep phones connected “in places no carrier towers can reach.”
Starlink didn’t immediately respond to a request for comment.
Starlink internet speeds and reliability decrease with popularity, a recent study found.
It wasn’t immediately clear if the T-Satellite service was affected by or involved in the outage.
The Intel logo is displayed on a sign in front of Intel headquarters on July 16, 2025 in Santa Clara, California.
Justin Sullivan | Getty Images
Intel reported second-quarter results on Thursday that beat Wall Street expectations on revenue, as the company’s new CEO Lip-Bu Tan announced significant cuts in chip factory construction. The stock ticked higher in extended trading.
Here’s how the chipmaker did versus LSEG consensus estimates:
Earnings per share: Loss of 10 cents per share, adjusted.
Revenue: $12.86 billion versus $11.92 billion estimated
Intel said it expects revenue for the third-quarter of $13.1 billion at the midpoint of its range, versus the average analyst estimate of $12.65 billion. The chipmaker said that it expects to break even on earnings while analysts were looking for earnings of 4 cents per share.
For the second quarter, Intel reported a net loss of $2.9 billion, or 67 cents per share, compared with a $1.61 billion net loss, or 38 cents per share, in the year-earlier period. Earnings per share were not comparable to analyst estimates due to an $800 million impairment charge, “related to excess tools with no identified re-use,” the company said. That resulted in an EPS adjustment of about 20 cents.
The report was Intel’s second since Lip-Bu Tan took over as CEO in March, promising to make the chipmaker’s products competitive again, and to reduce bureaucracy and layers of management, including slashing staff in Oregon and California.
In a memo to employees published on Thursday, Tan said that the first few months of his tenure had “not been easy.” He said that the company had “completed the majority” of its planned layoffs, amounting to 15% of the workforce, and that it plans to end the year with 75,000 employees. Intel previously said it was trying to reduce operating expenses by $17 billion in 2025.
Intel shares are up about 13% this year as of Thursday’s close after plummeting 60% in 2024, their worst year on record.
Tan also announced several other spending cuts in the memo, particularly in the company’s costly foundry division, which makes chips for other companies and is still looking for a big customer to anchor the business.
Intel said its foundry business had an operating loss of $3.17 billion on $4.4 billion in revenue.
Tan said that Intel had cancelled planned fab projects in Germany and Poland, and will consolidate its testing and assembly operations in Vietnam and Malaysia. He added that the company would slow down the pace of its construction of a cutting-edge chip factory in Ohio, depending on market demand and if it can secure big customers for the facility.
“Over the past several years, the company invested too much, too soon – without adequate demand,” Tan wrote. “In the process, our factory footprint became needlessly fragmented and underutilized.”
Tan wrote that the company’s forthcoming chip manufacturing process, called 14A, will be built out based on confirmed customer commitments.
“There are no more blank checks. Every investment must make economic sense,” Tan wrote.
The company’s client computing group, which is primarily comprised of sales of central processors for PCs, had $7.9 billion in sales, down 3% on an annual basis.
Revenue in the data center group, which includes some AI chips but is mostly central processors for servers, rose 4% to $3.9 billion. Tan wrote in his memo that Intel wants to regain market share in data center chips, and is looking for a permanent leader for the business. Longtime rival Advanced Micro Devices has increasingly been winning server business from cloud customers.
Tan added he would personally review and approve all chip designs before they are taped out, which is the final step of the design process before a new chip is manufactured.