Q4 22 EPS

$1.05

MISS 11.02%

Est. $1.18

Q4 22 Revenue

$76.05B

MISS 0.63%

Est. $76.53B

vs S&P Since Q4 22

+203.6%

BEATING MARKET

GOOGL +278.4% vs S&P +74.8%

Full Year 2022 Results

FY 22 EPS

$4.56

FY 22 Revenue

$282.84B

Market Reaction

Did GOOGL Beat Earnings? Q4 2022 Results

Alphabet closed out 2022 on a disappointing note, missing Wall Street expectations on both the top and bottom lines as a broad advertising downturn and persistent foreign exchange headwinds weighed heavily on results. The internet giant posted fourth… Read more Alphabet closed out 2022 on a disappointing note, missing Wall Street expectations on both the top and bottom lines as a broad advertising downturn and persistent foreign exchange headwinds weighed heavily on results. The internet giant posted fourth-quarter earnings of $1.05 per diluted share, falling 11.02% short of the $1.18 consensus estimate, while revenue of $76.05 billion edged just 1.0% higher year over year and came in 0.63% below analyst forecasts. The primary culprit was a sharp pullback in Google's advertising business, where total ad revenue slid to $59.04 billion from $61.24 billion a year earlier, with YouTube alone declining to $7.96 billion from $8.63 billion. Google Cloud offered a relative bright spot, growing to $7.32 billion while narrowing its operating loss. Net income fell to $13.62 billion from $20.64 billion a year ago. Looking ahead, Alphabet flagged roughly $1.90 billion to $2.30 billion in severance charges tied to a 12,000-person workforce reduction, a cost-cutting move that mirrors a sweeping pullback seen across the broader technology sector.

Key Takeaways

  • Google Cloud revenue growth to $7.3 billion from $5.5 billion with narrowing operating losses
  • U.S. revenue grew 6% year over year to $37.0 billion
  • Constant currency revenue growth of 7% versus 1% as reported, reflecting significant FX headwinds
  • YouTube subscriptions and Pixel devices momentum cited by CEO
24/7 Wall St

GOOGL YoY Financials

Q4 2022 vs Q4 2021, source: SEC Filings

24/7 Wall St

GOOGL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26
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GOOGL Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“Our long-term investments in deep computer science make us extremely well-positioned as AI reaches an inflection point, and I'm excited by the AI-driven leaps we're about to unveil in Search and beyond. There's also great momentum in Cloud, YouTube subscriptions, and our Pixel devices. We're on an important journey to re-engineer our cost structure in a durable way and to build financially sustainable, vibrant, growing businesses across Alphabet.”

— Sundar Pichai, Q4 2022 Earnings Press Release