Alphabet set to report modest beat for Q1 driven by AI, Cloud growth

Bank of America reiterated a Buy on Alphabet (GOOG.OQ) ahead of its April 29 Q1 results, lifting near-term expectations and forecasting results modestly above consensus. BofA projects stronger search monetization driven by Gemini and sees cloud as a key growth driver (AI demand and scale improving margins). The bank forecasts Q1 revenue of $92.0B and EPS $2.69, and raises Q2 estimates to $98.3B revenue and $2.80 EPS, with ad growth ~16% and cloud growth near 48–49%. Analysts flagged potential upside from valuation gains (e.g., Anthropic) and the recent Wiz acquisition ($300–400M contribution to Q2 cloud revenue), while noting risks from higher capex and margin pressure. Overall tone is constructive for shares, though investors will focus on Q2 guidance and peer comparisons (Meta, Microsoft).