Alphabet Inc. will present its first-quarter earnings after the markets close on Thursday. The tech giant is expected to report an 11% annual increase in revenue to about $89.2 billion, with earnings per share growing by around 6% to between $2.01 and $2.04 and net income at approximately $24.7 billion. In addition, search advertising is forecast to add 9% to around $50.49 billion, while cloud revenue should gain 28% year-on-year, reaching $12.29 billion, both growing less than in the previous quarter. Ad sales for its YouTube video platform are seen rising almost 11% to about $8.96 billion.
The earnings call will be as important as the quarterly figures. Investors will be attentive to any guidance on the direction of the company's artificial intelligence projects, and executives are likely keen to assure them that it can stand at the forefront of AI innovation. Stakeholders will also be interested in Alphabet's regulatory issues, as they face pressure in the United States to divest its Chrome web browser and the European Union is threatening action over the firm's antitrust breaches.