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Alphabet set for earnings beat as Cloud and AI chip demand rise despite slower Search growth

Company Fundamentals
20 Oct 2026
Proactive Investors
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Bullish
Alphabet set for earnings beat as Cloud and AI chip demand rise despite slower Search growth

Alphabet is expected to beat earnings estimates next week, driven by strong growth in Google Cloud and rising demand for its custom AI chips, offsetting slower Search growth. Bank of America forecasts Q3 revenue of $111.4 billion and EPS of $3.07, above analyst expectations. Cloud revenue could grow 93%, surpassing consensus, while Search growth may slow to 15%. Operating expenses are expected to be lower than estimates, supporting better operating income. Investors will watch for updates on search volumes, AI developments, and TPU sales during the earnings call on October 28. Alphabet remains well positioned with unique AI assets and custom technology, with a Buy rating from BofA.

Alphabet's shares are trading at USD 337.50 on Pluang, down 0.78% over the past day. The stock sees a typical hold time of 138 days and a dividend yield of 0.26%, reflecting steady investor interest as of Oct 20, 2026 23:51 WIB.

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