The Google parent company is scheduled to report results on Wednesday, with analysts expected to focus not only on revenue growth but also on the progress of its AI strategy, capital spending and competitive position in the rapidly evolving generative AI market, News.Az reports, citing Reuters.
One of the biggest concerns is the postponement of Gemini 3.5 Pro, Alphabet’s next flagship AI model. Originally expected to launch in June, the release has been delayed, raising questions about Google’s ability to keep pace with rivals in AI-powered coding assistants and autonomous AI agents—two of the fastest-growing segments of the industry.
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The delay comes as competition intensifies, particularly from Chinese open-source AI models that are attracting customers with lower costs and increasingly capable technology. Investors have also become more cautious about the enormous sums major technology companies are spending on AI infrastructure.
Despite those concerns, some analysts believe Alphabet’s greatest strength lies beyond individual AI models. The company continues to benefit from its vast ecosystem, combining billions of users across Google products with cloud computing, custom AI chips and its DeepMind research capabilities.
Earlier this year, Alphabet raised its 2026 capital expenditure forecast to between $180 billion and $190 billion, highlighting its commitment to expanding AI infrastructure. The company has also announced plans to raise approximately $85 billion through equity offerings to support future investments.
Those spending plans have drawn closer scrutiny as shareholders seek evidence that AI investments will generate sustainable returns rather than simply increasing costs.
Alphabet’s stock has fallen about 9% since late April, when the company reported a sharp jump in cloud revenue, underperforming several other members of the so-called “Magnificent Seven” technology stocks over the same period. Even so, the shares remain roughly 13% higher since the start of the year.
The company has also experienced the departure of several high-profile AI researchers, including Gemini co-lead Noam Shazeer and Google DeepMind executive John Jumper, adding to investor concerns about competition for top AI talent.
Wall Street still expects another strong quarter. According to analyst estimates compiled by LSEG, Alphabet’s revenue is projected to increase 21.3% year over year to $116.9 billion during the April-June period.
Google Cloud is expected to remain the primary growth engine, with revenue forecast to rise by around 64%, driven by demand for AI infrastructure and custom AI chips. Advertising revenue, meanwhile, is expected to grow at a slower but still healthy pace of 13.7%.
Major cloud agreements, including multi-billion-dollar AI chip partnerships with Meta Platforms and Anthropic, have helped strengthen Alphabet’s cloud business.
With AI competition accelerating and spending reaching record levels, investors will be looking beyond quarterly revenue when Alphabet reports earnings, seeking clearer signs that its ambitious AI strategy is translating into a sustainable competitive advantage.
