Alphabet CEO Sundar Pichai Says Waymo Could Meaningfully Contribute to Financials by 2027
Sundar Pichai, Alphabet's CEO, has indicated that the company’s self-driving taxi division, Waymo, could begin making a meaningful financial contribution as early as 2027. This follows recent expansions of its robotaxi service to cities like Sacramento, Chicago, and Dallas, with over 500,000 weekly rides reported by mid-2026. Waymo is currently part of Alphabet’s “other bets” segment, which generated $382 million in revenue during the second quarter. While it remains unclear how much direct financial impact Waymo will have on Alphabet's bottom line soon, its valuation—estimated at $126 billion based on a prior fundraising presentation—suggests significant potential. Goldman Sachs forecasts that the U.S. robotaxi market could reach $48 billion by 2035 and expand globally to over $400 billion. Despite this growth outlook, analysts argue it may be premature to label Alphabet undervalued solely due to Waymo’s future prospects.
Topics: Alphabet autonomous vehicles business growth robotaxi Waymo