Google Cloud Revenue Jumps 82% to $24.8B
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- Google Cloud revenue jumped 82% year-over-year to $24.8 billion, beating the $22.46 billion Wall Street estimate and easily topping last quarter's 63% growth to $20 billion, driven largely by enterprise AI adoption.
- Alphabet's cloud contracting backlog climbed to $514 billion in work not yet converted to revenue, signaling sustained forward demand.
- Alphabet reported $112.1 billion in profit for the quarter, with overall revenue up 24% year-over-year to $119.8 billion and Google Services revenue up 15% to $94.5 billion — marking the company's 12th consecutive quarter of double-digit revenue growth.
- Gemini now has 950 million monthly active users, up from 750 million in Q4 2025, underscoring consumer-side AI traction alongside the enterprise gains.
- Alphabet's capital expenditures are estimated between $180 billion and $190 billion for the year, and CEO Sundar Pichai told analysts the compute capacity investments will pay off in 2027, citing strong demand indicators and long-term deals.
Why it matters: Alphabet's $180–190 billion AI capex question has dogged Wall Street for quarters, but an 82% Google Cloud jump and a $514 billion backlog give Pichai concrete numbers to point at when investors ask when the spend converts to profit. Enterprise AI customers — not just consumer Gemini users — are now the dominant revenue engine backing that investment thesis.
