Mountain View, California-based Alphabet Inc. (GOOGL) is a multinational technology conglomerate holding company offering various products and platforms. With a market cap of $2.2 trillion, GOOGL 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 2025 on Tuesday, Jul. 22.

Ahead of the event, analysts expect GOOGL 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 GOOGL to report EPS of $9.53, up 18.5% from $8.04 in fiscal 2024. Its EPS is expected to rise 7.9% year over year to $10.28 in fiscal 2026.

GOOGL stock has underperformed the S&P 500 Index’s ($SPX) 13.6% gains over the past 52 weeks, with shares down 3.3% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR ETF’s (XLC) 26.7% uptick over the same time frame.

GOOGL's underperformance is due to the threat of antitrust actions by the U.S. government, which may force the company to sell assets like the Chrome browser. The rise of generative AI applications poses a threat, but Google's popularity and integration of AI into its search business could help retain users. Google could be required to let British users choose rival search services, according to the U.K. antitrust watchdog. The watchdog is proposing using new digital regulations to boost competition, including choice screens for users to easily switch between search services and AI assistants. Additionally, Google is facing a significant fine from the EU for stifling search engine competition with its Android mobile operating system.

On Apr. 24, GOOGL 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 GOOGL stock is bullish, with a “Strong Buy” rating overall. Out of 53 analysts covering the stock, 41 advise a “Strong Buy” rating, four suggest a “Moderate Buy,” and eight give a “Hold.” GOOGL’s average analyst price target is $200.74, indicating a potential upside of 13.9% from the current levels.