Google Cloud Surpasses Expectations with 82% Revenue Growth and $514 Billion Backlog
Alphabet's Google Cloud unit delivered an impressive 82% year-over-year revenue growth in Q2, driven largely by AI adoption. CEO Sundar Pichai highlighted a significant backlog of $514 billion during the earnings call, signaling strong future demand for cloud services. Google Cloud now accounts for over 20% of Alphabet's total revenue and is growing faster than its advertising segment. Nearly 90% of Fortune 100 companies are using Gemini Enterprise, a key AI product from Google Cloud. The unit’s net operating income more than tripled year-over-year. Currently holding a 14% market share in cloud infrastructure—up from 12% as recently as Q4 2025—Google Cloud is gaining ground on Amazon and Microsoft. While Alphabet still trails behind AWS, its rapid growth suggests it could soon challenge for second place.
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Topics: AI adoption cloud computing earnings report revenue growth