Google ( GOOGL ) parent company Alphabet will report third-quarter earnings Tuesday, after beating second-quarter profit expectations in artificial intelligence.
The tech giant is expected to report third-quarter revenue of about $86.4 billion, according to analyst estimates compiled by FactSet (FDS). Google’s U.S. revenues are expected to be $40.6 billion, and its “rest of the world” revenues are expected to be $45 billion. According to FactSet, the company is expected to report earnings per share (or EPS) of $1.84.
In the second quarter, Google reported revenue of nearly $85 billion, exceeding Wall Street expectations by about $640 million. Google’s revenue rose 14% year over year and its Cloud division surpassed $10 billion in quarterly revenue for the first time, according to Google President Ruth Porat. Google Cloud also surpassed $1 billion in operating profit for the first time.
“Our strong performance this quarter highlights continued strength in Search and momentum in Cloud,” Google CEO Sundar Pichai said in a statement at the time. “We innovate at every layer of the AI stack. Our longstanding infrastructure leadership and internal research teams position us well as technology evolves and as we pursue the many opportunities ahead.”
In recent months, Google has reportedly made strides in AI modeling software that resembles human reasoning skills. The company has long focused on “reasoning” large language models (LLMs), including its work on “chain of thought” prompts.
This technique, which Bloomberg Google says humans use, allows LLMs to solve multi-step problems using a “series of intermediate reasoning steps,” similar to the way a human would do it. OpenAI unveiled its series of “reasoning” models, OpenAI o1, in September.
Google is also working on improving the reasoning capabilities of its Gemini chatbot. In July, Google made its fastest and most cost-efficient model, 1.5 Flash, available in the unpaid version of Gemini.
Google shares are up about 18% so far this year.
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