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Google (GOOG, GOOGL) will report its third-quarter earnings after the bell on Wednesday, just hours after the company debuted its latest frontier AI model.
Google says the new model called Gemin 4 Carbon outpaces even its Gemini 4 Argon, which it released just two weeks ago. Carbon, the company says, also beats out competing models including OpenAI’s GPT-6 Astra and Anthropic‘s Claude Opus 5.5.
Investors on Wall Street, meanwhile, have been vacillating between concern and exuberance about the future of AI and whether hyperscalers’ vast investments in the technology will pay off.
Those fears came into focus last week,
Those fears came into focus last week, as traders dumped shares of CoreWeave over questions about its massive debt load, sending large swaths of the market lower.
For the third quarter, analysts anticipate Google will report earnings per share of $3.01 on revenue of $127.8 billion. Revenue excluding traffic acquisition costs is expected to come in at $111.2 billion.
Google’s advertising segment is projected to see sales of $83.5 billion, while its cloud unit could see revenue jump 91% to $28.9 billion.
Google stock rose 1% during premarket trading on Wednesday, ahead of its earnings release.
The company could also book significant revenue
The company could also book significant revenue on the sale of its custom Tensor Processing Units (TPUs) to third-party data centers. On Tuesday, Oracle announced that it will be the first company to purchase Google’s AI processors for use in its own data centers.
“Near-term, we think TPU sales-driven upside, a competitive agentic offering, and broader Gemini 4 launch could be catalysts,” BofA Global Research analyst Justin Post wrote in an investor note.
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According to TD Cowen analyst John Blackledge, Google is expected to generate $9.4 billion in TPU sales in the second half of 2026. That, he wrote, could increase to $62.5 billion in 2027 and 138 billion in 2028.
Google is also facing increasing competition from Meta
But Google is also facing increasing competition from Meta thanks to its new Muse AI agent. According to Meta CEO Mark Zuckerberg, 10 million people have set up Muse, with the majority of users accessing the app for shopping.
If Muse continues to expand its user base and gain ground in online sales, it could prove to be a long-term threat to Google.
“Search usage [and] growth is back in focus given Muse launch and challenges Google could face in migrating users to agentic while maintaining strong monetization,” Post wrote.
Email Daniel Howley atdhowley@yahoofinance.com. Follow him on X at@DanielHowley.
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