"The tech giant is saddled with $3.9 billion in legal charges-including a $3.5 billion EU fine and roughly $400 million in other legal expenses. Still, Bank of America Securities analyst Justin Post maintains a Buy rating with a price forecast of $280, up from $252. Also Read: Alphabet's New Search Updates Could Boost Revenue By Enhancing Ad Visibility And User Experience Post credits Alphabet's Q3 revenue growth to robust digital ad spending. The analyst's checks indicate that advertising demand outpaced expectations."
"Post raised his Q3 revenue estimate above Street consensus to $86 billion, compared to $85 billion, while adjusting EPS down to $2.17 from a Street forecast of $2.29. Post projects operating expenses of $29.6 billion and a 35.7% operating margin. That's down 259 basis points year-over-year but improving when excluding one-time charges. For Q4, the analyst forecasts revenue of $93.8 billion and EPS of $2.59, both slightly ahead of consensus. Positive estimate revisions are possible if Alphabet beats in Q3."
Alphabet is expected to report strong Q3 revenue growth driven by robust digital ad spending and AI-driven search traffic shifts. The company faces $3.9 billion in legal charges, including a $3.5 billion EU fine and about $400 million in other legal expenses, which weigh on profits. Q3 revenue is estimated at $86 billion with EPS of $2.17 versus a Street forecast of $2.29. Operating expenses are projected at $29.6 billion with a 35.7% operating margin, down 259 basis points year-over-year but improving excluding one-time charges. Q4 revenue of $93.8 billion and EPS of $2.59 are forecast. Ad growth is projected at 11%, search revenue up 12%, and cloud up 32%.
Read at Benzinga
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