Bank of America raises Alphabet’s Q2 EPS estimate to $8.38 on $80 billion unrealized gains from its Anthropic stake.
Alphabet’s Q2 2026 earnings, due July 22, may include an $80 billion boost to operating income from revaluing its 14% stake in AI firm Anthropic. The gain stems from Anthropic’s valuation surge to $965 billion in Q2, up from $380 billion in Q1, following a $65 billion fundraising round.
Bank of America lifted its Q2 EPS estimate to $8.38, far above the Street’s $2.90 consensus, citing the non-core revaluation. In Q1, nearly half of Alphabet’s record $62.6 billion net income came from similar mark-ups of its Anthropic and SpaceX holdings, not its ad or cloud businesses.
The bank reiterated its buy rating and $430 price target on Alphabet, though the earnings focus remains on Search growth and Cloud momentum.