Google’s parent company Alphabet is scheduled to report its fiscal Q1 2025 results this Thursday after the market close, and investors are holding their breath—but not necessarily over the numbers. While analysts expect a relatively stable report this time around, all eyes are on what the tech giant says about the months ahead.
Why? President Trump’s recent trade escalation has everyone from chipmakers to social media giants rethinking international strategy, and Alphabet is no exception. The 25%+ tariffs placed on major trading partners, including new measures targeting digital services and hardware, could rattle future earnings, especially in the company’s advertising-heavy revenue mix.
Analysts believe Q1 results won’t reflect the full brunt of tariffs just yet. Barclays analyst Ross Sandler pointed out in a recent investor note that “transaction velocity in e-commerce has shown signs of cooling,” suggesting that ad budgets may shrink if economic conditions tighten further. “Given the macro noise, we would expect digital ads to weaken in Q2,” Sandler added.
Google has had a bumpy 2025 so far. Its shares are down over 19% year-to-date and about 3% compared to the same time last year. The drop has been less about performance and more about geopolitical risk. The company’s core strengths—Search, YouTube, and its ad network—remain intact, but the global outlook is anything but.
What could investors learn Thursday? Forward guidance. If Alphabet’s executives issue any warnings about advertising spend, regulatory hurdles abroad, or weakened demand in tariff-impacted regions, markets may respond quickly. On the other hand, signs of resilience or clever repositioning could reassure jittery shareholders.
Either way, this isn’t just another earnings report—it’s a litmus test for how Big Tech plans to navigate an increasingly protectionist world economy.
