Google is expected to reveal continued strength in its cloud business as AI adoption accelerates when it reports its Q4 numbers on Thursday.
With Google’s AI-powered chatbot now sitting at the top of everyone’s internet browser, analysts see a path ahead for its search business, which is expected to see revenue increase 13%.
Google Cloud, which is projected to generate $16.25 billion in revenue with impressive 35.9% growth, is demonstrating the company’s success in the enterprise cloud computing market as businesses scramble to implement AI solutions.
Beyond business-unit performance, Google Gemini is quietly becoming a favoured foundation model for developers, and it will be interesting to see what the firm has to say about its plans for AI services.
“Google is expected to deliver a solid fourth-quarter print, with Search and Cloud both showing clear momentum,” said Lale Akoner, global market analyst at eToro.
“Search growth is benefiting from stabilising competitive pressures in AI-driven discovery, with paid clicks accelerating and volume offsetting some moderation in pricing. Cloud remains the structural growth engine, supported by a large and expanding backlog and strong demand for AI infrastructure, pointing to continued acceleration into 2026.
“However, while estimates have moved higher, they are now broadly aligned with consensus. That matters because Google shares have already re-rated meaningfully over recent months, leaving less room for upside from a “beat-and-raise” quarter alone. Margins should continue to improve, but at a slower pace than earlier in the year as investment intensity remains elevated.”
Akoner continued to explain that expectations are rising among investors, and results alone will not be enough to send shares higher.
“For the stock to outperform from here, investors will likely need to see sustained earnings revisions across the market, not just a reassuring quarter.”