Summary of Earnings Reports for Alphabet and Tesla

Date: 22 July 2026

Overview

Alphabet and Tesla are set to report their quarterly earnings after the market closes today. Investors are keenly watching these reports to gauge the performance and future prospects of these tech giants.

Alphabet Inc. (GOOGL)

Key Expectations

• Expected EPS: $2.9–3.0
• Expected Revenue: $101–117 billion (24% YoY growth)
• Google Cloud revenue forecast: $22.8 billion (67% YoY growth)

Focus Areas

Investors are particularly interested in:

• The growth of Google Cloud and its ability to justify Alphabet's significant AI investments.
• Management's commentary on capital expenditures (CAPEX), which are projected to be around $45 billion for the quarter.
• Free cash flow trends, which have seen a 47% decline YoY due to heavy AI investments.

Advertising Revenue

Despite the focus on AI, advertising remains Alphabet's primary revenue source. Expected figures include:

• Google Advertising revenue: $81.68 billion (+14.5% YoY)
• YouTube Ads revenue: $10.76 billion (+9.8% YoY)

Tesla Inc. (TSLA)

Key Expectations

• Expected Revenue: $26.2–27.6 billion
• Expected EPS: $0.50–0.55
• Vehicle deliveries: 480,126 (25% YoY increase)

Focus Areas

Investors are shifting their focus from vehicle delivery numbers to profitability metrics, particularly:

• Automotive gross margin, expected to decline from 19.2% to 18.1%.
• Free cash flow, projected to be around -$3.25 billion with CAPEX of approximately $6.7 billion.

AI Investments and Future Prospects

Tesla's earnings call is anticipated to focus on:

• Investments in AI infrastructure, Robotaxi development, and the Optimus humanoid robot.
• Updates on the rollout of Robotaxi services and production timelines for Optimus and Cybercab.

Market Reactions

Both companies are trading below their all-time highs, with Alphabet shares approximately 10% lower and Tesla shares around 20% lower. The market is poised for potential volatility following the earnings announcements, with options markets indicating expected moves of ±5.5% to ±8% for Tesla.

Conclusion

The upcoming earnings reports for Alphabet and Tesla are critical for investors, as they will provide insights into the effectiveness of their substantial investments in AI and other technologies, as well as their ability to maintain profitability amidst rising expenditures.