Google Cloud revenue jumped 82% year-over-year, accelerating for the fourth straight quarter as AI demand drives enterprise adoption.
Alphabet’s Google Cloud revenue climbed 82% year-over-year to $24.77 billion in Q2, marking its fourth consecutive quarter of accelerating growth. The segment’s expansion, up from 63% in Q1, reflects rising enterprise adoption of AI-driven services like Gemini Enterprise, now used by nearly 90% of Fortune 100 companies.
Total revenue rose 24.23% to $119.80 billion, extending a 12-quarter streak of double-digit growth. Earnings per share reached $9.11, beating estimates of $3.0427, while operating income grew 30.38% to $40.77 billion. Operating margin expanded 2 percentage points to 34%, despite a $45 billion capital expenditure surge that pushed free cash flow negative.
The company’s $460 billion backlog and strong cloud momentum position it competitively against peers like Microsoft and Amazon, though AI-related spending continues to weigh on near-term cash flow metrics.