Chief Executive Sundar Pichai, who collected $100.5 million in 2015 according to recent disclosure, will likely tout the company's strength in mobile operations and YouTube.
Wall Street expects the company to generate $7.96 per share in earnings from $16.57 billion in sales for the quarter.
"As a reminder, last quarter was the first time Google's management team broke out core Google's performance and its 'Other Bets' segments to give investors a cleaner look into Google's true profitability along with the company's ability to invest in the future," wrote Jim Cramer, TheStreet's founder and manager of the Action Alerts PLUS portfolio, which owns Alphabet. "In the same light, the company has been very focused on operational efficiency since Ruth Porat joined as CFO and we expect this quarter's results to follow that same positive trend; we will be looking for updates on the company's capex plans within the release and on the call."
As it did last quarter, the company will be reporting Google's core businesses, including search, the Android mobile platform, online maps, the Chrome browser, YouTube, Gmail and others, separately from "Other Bets," which includes operations such as the Nest smart home unit and Google Fiber Internet service.
Analysts expect paid clicks overall to grow by 27%, despite a 6% decline in the price that advertisers pay for each click.
"The increased ad inventory has decreased [cost per clicks] as one would expect, but the corresponding increase in clicks is likely leading to an overall increase in spending," Evan Wilson of Pacific Crest Securities wrote in an earnings preview.
Results from search engine marketing firms Merkle and Kenshoo auger well for Alphabet, Wilson suggested. Merkle saw paid search grow 25%, while Kenshoo reported an increase of 13%.
UBS analyst Eric Sheridan named Alphabet and Priceline (PCLN as the two best-positioned stocks among large, growth players it covers, citing "sustainable revenue growth, long-term margins, competition and cash returns," in a recent note. Other leading online names such as Facebook (FB - Get Report) and Amazon.com (AMZN - Get Report) , he suggested, have become "bogged down in myopic debates" on differences between estimates and results.
Investors will seek information on how Google will put its cash to work across its various investments in fiber, cloud computing and the Other Bets grab bag, Sheridan wrote. Alphabet announced that it would buy back $5 billion worth of shares last year, and investors may hope for more of the same.
Google will also have a chance to comment on the European Commission's recent allegation that the company "abused its dominant position" in the mobile market by placing restrictions on wireless devices with its Android operating system.
"Based on our investigation thus far, we believe that Google's behaviour denies consumers a wider choice of mobile apps and services and stands in the way of innovation by other players, in breach of EU antitrust rules," Commissioner Margrethe Vestager said in a statement.
CFO Porat, who came from a position as Chief Financial Officer at Morgan Stanley last May and has emphasized operating efficiency, is approaching her first anniversary. "She has dazzled investors in her short time as CFO with her savvy cost management and well-versed Wall Street language," Cramer wrote.
With the restructuring of Google and Other Bets, heightened efficiency and other moves, Pacific Crest's Wilson suggested the company is positioned well.
"All in all, we've received the trifecta of more disclosure, capital returns with the share repurchase, and more rational spending in the last year," he wrote, "and rather than leaving on that note, we recommend investors stick around as the strong fundamentals take over," he wrote.