10:56 AM EDT, 07/22/2025 (MT Newswires) -- Alphabet's (GOOG, GOOGL) Google ( GOOG ) is poised to outperform expectations in Q2, but factors such as the upcoming legal antitrust decision in August and investor skepticism on AI investment could bear down on the near-term outlook, RBC Capital said in a Monday note.

The tech giant will likely surpass Street expectations of 9% growth in its Search segment, where third-party data indicates a "couple hundred" basis points of upside, RBC analysts said. The YouTube ( GOOG ) and Cloud segments are also expected to see stable growth, albeit slightly slower compared with previous periods, at 27% and 10% to 11%, respectively, they added.

Meanwhile, Judge Amit Mehta is set to give his decision in August regarding the company's penalties resulting from antitrust violations. RBC expects that most outcomes, save for a divestiture of the Chrome browser, will have a "relatively small impact" on Google's ( GOOG ) distribution and the use of tis products.

The analysts also said they expect a 5% to 10% loss of total users given the "stickiness" of Google's ( GOOG ) products, and a low-single-digit headwind would be "the most likely path forward."

RBC has an outperform rating on the company stock, with a price target of $200.

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