For the three-month period that ended June 30, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) reported a better-than-expected top line of $119.8 billion.
This figure was propelled by the monster success of Google Cloud, which posted stellar year-over-year revenue growth of 82%
This was after a huge 63% gain in the first quarter. The Alphabet thesis is becoming more defined by its artificial intelligence (AI) ambitions. Investors must know that the Google Cloud story comes with one major red flag: negative free cash flow.
So much demand It’s hard not to come away impressed by Google Cloud, whose revenue growth is accelerating in remarkable fashion. The segment ended the second quarter with a whopping $514 billion in customer backlogs, more than half of which management expects to register as revenue within the next 24 months. “We are seeing strong, diversified demand across products, customers, geographies, and industries,” CEO Sundar Pichai said on the Q2 2026 earnings call. Scalability is on full display.