Google Cloud revenue jumped 63% to $20 billion in Q1 2026, with a $462 billion backlog fueling Alphabet’s stock rally.
Alphabet’s stock soared 112.9% over the past year, outpacing the S&P 500’s 26.4% gain, driven by its AI-powered cloud business. The company’s cloud revenue surged 63% in Q1 2026 to $20 billion, with a backlog nearly doubling to $462 billion.
Management highlighted enterprise AI solutions as the primary growth driver for cloud, eclipsing the 19% growth in its core Search business. The backlog’s rapid expansion signals strong demand, though capacity constraints may pose challenges.
The stock’s re-rating reflects investor confidence in Alphabet’s AI dominance, contrasting with slower growth from peers like Microsoft and Meta.