After the bell, Q2 earnings results will be reported.

• Google's parent company is predicted to report growth in its second quarter, despite the announcement of AI developments and layoffs.
• Will Alphabet, the top-performing internet and software giant, maintain its growth trajectory?
• Modest growth is predicted by analysts in key areas such as cloud and revenue.

Google's parent company will release its second-quarter earnings report on Tuesday following the market closure.

Here's what analysts are expecting:

• Earnings per share: $1.84, according to LSEG
• Revenue: $84.18 billion, according to LSEG

Wall Street is also watching several other numbers in the report:

• YouTube advertising revenue: $8.93 billion, according to StreetAccount
• Google Cloud revenue: $10.20 billion, according to StreetAccount
• Traffic acquisition costs (TAC): $13.54 billion, according to StreetAccount

Will Alphabet, which has outperformed other internet and software megacaps throughout the year, maintain steady growth despite tougher comparisons from the previous year? Analysts anticipate modest growth in key areas such as cloud and overall revenue, following a quarter of leadership changes, AI announcements, and market expansions.

In the quarter, Alphabet made several expansion updates, including for its self-driving car unit Waymo, which expanded its service to all San Francisco users. This was Waymo's second citywide rollout, following its 2020 debut in the Phoenix metropolitan area.

Alphabet unveiled a range of new AI products at its annual developer conference in May, including a new large language model called Gemini 1.5 Flash, capable of rapidly summarizing discussions, adding captions to images and videos, and extracting information from extensive documents and tables.

Google introduced AI Overview, a major change in search in 25 years, to a select group of users, providing a summary of answers to queries at the top of search results.

However, the quarter also brought criticism for some of those new products.

Despite Google's efforts to develop AI Overview for over a year, users soon discovered that their queries were returning inaccurate or nonsensical answers, and there was no option to opt out. The widely circulated results included a false statement that Barack Obama was America's first Muslim president, a suggestion to put glue on pizza, and a recommendation to eat at least one rock per day.

Despite Google's recent announcement of fixes for AI Overview issues, the latest in a series of AI product launch mishaps by the search giant has raised doubts about the company's ability to safely roll out AI products at the pace of competition. Additionally, it is uncertain how much revenue growth these new products will generate from both users and advertisers, a topic expected to be discussed during Alphabet's earnings conference call.

Liz Reid, Google's search head, informed employees at a recent all-hands meeting that the company may not always be able to detect AI errors. Reid encouraged employees to continue developing AI products and to fix mistakes as they are discovered by users and employees.

Alphabet has appointed Anat Ashkenazi as its new CFO, who previously worked at Eli Lily, the world's most valuable drugmaker. Ashkenazi will begin her tenure on July 31, replacing Ruth Porat, who has taken on a new role as Alphabet president and chief investment officer.

In the quarter, Alphabet tightened its belt further with additional cuts, including letting go of over 100 employees from Google's cloud unit and at least 200 employees from its "Core" engineering teams, shifting some roles to India and Mexico, according to CNBC.

Despite ongoing budget cuts and resource constraints, company leaders have been met with employee complaints about a decline in morale, which they attribute to a lack of trust, tight deadlines, and limited opportunities for advancement. This comes at a time when the company is striving to maintain a positive image as a top employer while also competing for top tech talent during a competitive AI market.

Google is reportedly in advanced talks to acquire cybersecurity firm Wiz for $23 billion, which would be its largest-ever acquisition. The deal is expected to close "soon" and would help bolster Google's cloud unit revenue, coming shortly after the company ended talks to potentially acquire marketing software firm.