Alphabet's Cloud Revenue Surges 82% to $24.8 Billion

Earnings Impact 4
โดย Zacks Investment Research·US·Read original
Summary · why it matters

Alphabet's Google Cloud revenues surged 82% year over year to $24.8 billion in the second quarter of 2026, driven by strong demand for AI infrastructure and enterprise AI solutions, strengthening its competitive position against Amazon and Microsoft. Google Cloud operating income more than tripled to $8.8 billion, with operating margin expanding to 35.6% from 20.7%, and cloud backlog reached $514 billion, with more than half expected to convert to revenue over the next 24 months. Alphabet remains supply constrained as AI demand outpaces compute capacity, and plans to use third-party capacity while expanding internal infrastructure, which may modestly pressure Cloud margins in the near term. Amazon's AWS saw second-quarter revenues surge 37% to $42.2 billion, while Microsoft's Azure and other cloud services revenues rose 43% in the fourth quarter of fiscal 2026. Alphabet shares have risen 8.9% year to date, underperforming the sector's 15.4% growth, and the Zacks Consensus Estimate for 2026 earnings is $20.50 per share, implying 89.64% growth from 2025.

Impact on stocks 3

Artificial Intelligence± Mixed · 3 stocks
Alphabet Inc Class C
GOOG
▲ PositiveDemandCapitalrelevance

Google Cloud revenue surged 82% on strong AI infrastructure and enterprise AI demand.

Amazon.com Inc
AMZN
▼ NegativeCompetitionrelevance

Google Cloud's 82% growth and strong backlog highlight competitive pressure on AWS.

Microsoft Corporation
MSFT
▼ NegativeCompetitionrelevance

Google Cloud's rapid growth and backlog pose competitive threat to Azure.

Theme Impact 4

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