In the prior quarter, the company's cloud revenue grew 63%, its best rate since the segment was broken out, driven by enterprise AI demand.
Investors are watching for updates on the company's AI strategy after it delayed the launch of its Gemini 3.5 Pro model, raising concerns over its massive capex plans.
GOOGL's stock has risen about 11% year to date, in line with the Nasdaq .IXIC; the stock was recently at 24 times forward earnings, above its five-year average of 22 times.
Shares rise ahead of quarterly results
Alphabet GOOGL.O shares were gaining 0.2% on Wednesday ahead of quarterly results after the bell, with investors focused on payoffs from its heavy AI spending amid model launch delays.
Google's parent is expected to post quarterly revenue of $116.93 billion, up 21% year over year, and adjusted EPS of $2.89 versus $2.31 a year ago, per LSEG.
