Google Cloud revenue jumped 63% year-over-year to $20 billion, surpassing Microsoft and Amazon in hyperscaler growth.
Alphabet’s Google Cloud revenue surged 63% year-over-year to $20 billion in Q1 2026, outpacing Microsoft Azure’s 40% and Amazon AWS’s 28% growth. The segment’s expansion underscores its shift from an advertising-dependent model to a cloud-driven business with AI integration.
The company’s $462 billion backlog, nearly doubling sequentially, signals strong demand, with over 50% expected to convert to revenue within 24 months. Alphabet’s $185 billion capex plan further reflects confidence in sustained cloud and AI infrastructure growth.
Generative AI products contributed to an 800% revenue increase, reinforcing Alphabet’s position as a leader in hyperscale computing. Despite this, the stock trades at a forward P/E of 25, below its growth trajectory.