"Alphabet has pushed its Gemini models deep into its core products, like Search and Android, or Workspace and Google Cloud. A multiyear agreement with Apple to use Gemini to overhaul Siri from late 2026 offers access to more than two billion active devices, and reduces reliance and search revenues alone. Google Cloud ended the third quarter with a $155bn backlog, underlining multi-year revenue visibility, while recent growth above 30 per cent has helped shift perceptions of the business."
"Alphabet will be first up on Wednesday, after market close. The Google owner enters earnings season in confident territory compared to some of its rivals, after recently becoming the world's second most valuable company. The search titan hit a $4 trillion valuation on the back of a strong 2025 rally, and its investors will be undoubtedly looking for confirmation that momentum in Google Cloud and advertising can continue to support that valuation."
Alphabet has embedded its Gemini models across core offerings including Search, Android, Workspace and Google Cloud, and has a multiyear Apple deal to overhaul Siri from late 2026. Google Cloud shows multi-year revenue visibility with a $155bn backlog and recent growth above 30 per cent. Investors will scrutinize upcoming earnings for confirmation that cloud momentum and advertising can sustain a $4tn valuation. Markets are sensitive to AI spending, margins and costs after Microsoft’s results prompted concerns about near-term returns. Alphabet’s planned $32bn acquisition of Wiz awaits regulatory approval and could deepen enterprise security capabilities.
Read at City AM
Unable to calculate read time
Collection
[
|
...
]